On January 1, 2021, Casey Corporation exchanged $3,170,000 cash for 100 percent of the outstanding voting stock of Kennedy Corporation. Casey plans to maintain Kennedy as a wholly owned subsidiary with separate legal status and accounting information systems. At the acquisition date, Casey prepared the following fair-value allocation schedule: Fair value of Kennedy (consideration transferred) Carrying amount acquired Excess fair value to buildings (undervalued) to licensing agreements (overvalued) to goodwill (indefinite life) $ 3,170,000 2,600,000 $ 570,000 324,000 (198,000) 126,000 $ 444,000 Immediately after closing the transaction, Casey and Kennedy prepared the following postacquisition balance sheets from their separate financial records (credit balances in parentheses). Accounts Cash Accounts receivable Inventory Investment in Kennedy Buildings (net) Licensing agreements Goodwill Total assets Accounts payable Long-term debt Common stock Additional paid-in capital Retained earnings Total liabilities and equities Casey Kennedy $ 472,000 $ 184,500 1,235,000 316,000 1,470,000 165,500 3,170,000 0 5,820,000 1,920,000 3,430,000 799,000 0 $ 12,966,000 $ 6,016,000 $ (336,000) $ (406,000) (3,630,000) (3,010,000) (3,000,000) 0 (6,000,000) (1,000,000) (500,000) (1,100,000) $ (12,966,000) $ (6,016,000)