On January 1, Year 1, Owen Corp. acquired all of Sharp Corp.'s common stock for $1,200,000. On that date, the fair values of Sharp's assets and liabilities equaled their carrying amounts of $1,320,000 and $320,000, respectively. During Year 1, Sharp paid cash dividends of $20,000. Selected information from the separate balance sheets and income statements of Owen and Sharp as of December 31, Year 1, and for the year then ended follows: Owen Sharp Balance sheet accounts Investment in subsidiary Retained earnings $$1,300,000 $ 1,240,000 $540,000 Total stockholders' equity 2,620,000 1,100,000 Income statement accounts Operating income Equity in earnings of Sharp 120,000 420,000 200,000