On January 1, Year 5, KPU Co. purchased 80% of the outstanding common shares of UFV Co. for $12,000 in cash. On that date, the shareholders' equity of UFV consisted of $3,000 in common shares and $5,000 in retained earnings. For the year ended December 31, Year 10, the income statements for KPU and UFV were as follows: UFV $ 13,500 1,100 8,900 2,100 1,000 500 $ 2,100 Sales Other Income Cost of goods sold Depreciation expense Other expenses Income tax expense Net income At December 31, Year 10, the condensed balance sheets for the two companies were as follows: Cash and accounts receivables Inventory Property, plant and equipment Investment in Sub Total assets KPU $ 32,500 5,500 21,500 4,200 3,800 1,400 $ 7,100 Liabilities Common shares Retained earnings Total liabilities and shareholders' equity KPU UFV $ 11,000 $ 9,100 3,500 2,000 25,800 15,000 12,000 $ 52,300 $ 33,300 6,000 13,000 $ 52,300 $ 26,100 $ 15,500 3,000 7,600 $ 26,100