On January 1, 2022, Palmcroft Company acquired 100 percent of the outstanding voting shares of Salt River, Incorporated, for $764,000 cash. At January 1, 2022, Salt Rivers net assets had a total carrying amount of $534,800. Equipment (eight-year remaining life) was undervalued on Salt Rivers financial records by $82,000. Any remaining excess fair over book value was attributed to a database developed by Salt River (four-year remaining life), but not recorded on its books. Palmcroft applies the equity method to account for its investment in Salt River. Each year since the acquisition, Salt River has declared a $41,500 dividend. Salt River recorded net income of $80,500 in 2022 and $90,500 in 2023