On January 1, 20X2, Fischer Corporation purchased 80 percent of Culbertson Company common shares and 70 percent of its preferred shares at underlying book value. At that date, the fair value of the common stock. Culbertson's balance sheet at the time of purchase contained the following balances: Total Assets $915,000 Total Liabilities Preferred Stock Common Stock Retained Earnings S 85,000 140,000 330,000 360,000 Total Assets $915,000 Total Liabilities and Equities $915,000 The preferred shares, which are cumulative with regard to dividends, have a 14 percent annual dividend rate and are five years in arrears on January 1, 20X2. All of the $10 par value preferred shares are callable at $12 per share after December 31, 20X0. During 20X2, Culbertson reported net income of $80,000 and paid no dividends