On January $1,$ Year $4,$ Cyrus Inc. paid $$927,000$ in cash to acquire all of the ordinary shares of Kelvin Company. On that date, Kelvin$$s retained earnings were $$213,000.$ All of Kelvin$$s assets and liabilities had fair values equal to carrying amounts except for an investment in bonds, which was worth $$13,156$ more than carrying amount and will mature on December $31,$ Year $8.$ The recoverable amount for goodwill was $$80,000$ at the end of Years $4$ and $5.$

In Year $4,$ Cyrus reported net income from its own operations $($exclusive of any income from Kelvin$)$ of $$138,000$ and declared no dividends. In Year $4,$ Kelvin reported net income of $$103,000$ and paid a $$53,000$ cash dividend. Cyrus uses the cost method to report its investment in Kelvin and uses the effective interest method to amortize premiums or discounts on investment in bonds. The amortization of the acquisition differential pertaining to the investment in bonds was $$2,617$ in Year $4$ and $$2,636$ in Year $5.$

The financial statements for Cyrus and Kelvin for the year ended December $31,$ Year $5,$ were as follows:

Cyrus Kelvin

Revenues and investment income $ $1,058,000$ $ $974,000$

Expenses $(778,000)(814,000)$

Profit $ $280,000$ $ $160,000$

Retained earnings, $1/1/$Year $5$ $ $944,000$ $ $263,000$

Profit $280,000160,000$

Dividends paid $(117,000)(55,000)$

Retained earnings, $12/31/$Year $5$ $ $1,107,000$ $ $368,000$

Equipment $($net$)$ $ $844,000$ $ $420,000$

Investment in Kelvin $927,0000$

Investment in bonds $0328,000$

Receivables and inventory $544,000614,000$

Cash $185,000217,000$

Total assets $ $2,500,000$ $ $1,579,000$

Ordinary shares $ $688,000$ $ $588,000$

Retained earnings $1,107,000368,000$

Liabilities $705,000623,000$

Total equities and liabilities $ $2,500,000$ $ $1,579,000$