On January 1, 2020, Travers Company acquired 90 percent of Yarrow Company's outstanding stock for $738,000. The 10 percent noncontrolling interest had an assessed fair value of $82,000 on that date. Any acquisition-date excess fair value over book value was attributed to an unrecorded customer list developed by Yarrow with a remaining life of 15 years. On the same date, Yarrow acquired an 80 percent interest in Stookey Company for $360,000. At the acquisition date, the 20 percent noncontrolling interest fair value was $90,000. Any excess fair value was attributed to a fully amortized copyright that had a remaining life of 10 years. Although both investments are accounted for using the initial value method, neither Yarrow nor Stookey has distributed dividends since the acquisition date. Travers has a policy to declare and pay cash dividends each year equal to 40 percent of its separate company operating earnings. Reported income totals for 2020 follow: Travers Company Yarrow Company Stookey Company $320,000 170,000 128,000 The following are the 2021 financial statements for these three companies (credit balances indicated by parentheses). Stookey has transferred numerous amounts of inventory to Yarrow since the takeover amounting to $84,000 (2020) and $105,000 (2021). These transactions include the same markup applicable to Stookey's outside sales. In each year, Yarrow carried 20 percent of this inventory into the succeeding year before disposing of it. An effective tax rate of 21 percent is applicable to all companies. All dividend declarations are paid in the same period. Sales Cost of goods sold Operating expenses Net income Retained earnings, 1/1/21 Net income (above) Dividends declared (327,200) 130,880 Retained earnings, 12/31/21 $ (916,320) $ (820,800) Current assets $ 456,200 $ Travers Company Yarrow Company $ (920,000) $ (615,400) 490,600 102,200 328,200 82,000 (327,200) $ (205,200) $ (720,000) $ (615,600) Stookey Company $ (504,000) 302,400 100,800 $ (100,800) $ (318,000) (100,800) 0 $ (418,800) $ 330,700 (205,200) 0 389,800 Investment in Yarrow Company 738,000 0 0 Investment in Stookey Company 0 Land, buildings, and equipment (net) 972,800 Total assets $ 2,167,000 Liabilities Common stock Retained earnings, 12/31/21 $ (750,680) (500,000) (916,320) $ 1,589,800 $ (466,600) (302,400) (820,800) 0 518,800 $ 849,500 $ (230,700) (200,000) (418,800) 360,000 840,000