On January 4, 2020, Black Corporation acquired 100% of the outstanding shares of White Inc by a share-for-share exchange of its own shares, valued at $1,800,000. The statements of financial position of both companies just prior to the share exchange are as follows: Statement of Financial Position December 31, 2019 Cash Black Accounts and other receivables $ 100,000 50,000 White $ 80,000 120,000 Inventories Building and equipment Accumulated depreciation 800,000 Deferred charges $ 1,060,000 Accounts and other payables $ 150,000 Bonds payable Deferred income taxes Common shares 110,000 1,600,000 60,000 750,000 150,000 800,000 - 400,000 120,000 $ 870,000 $ 80,000 300,000 30,000 Retained earnings 100,000 $ 1,060,000 250,000 210,000 $ 870,000 White had patents, not shown on the SFP, that had an estimated fair value of $225,000 and an estimated remaining productive life of 5 years. White's building and equipment had an estimated fair value of $100,000 in excess of carrying value, and the deferred charges were assumed to have a fair value of zero. White's buildings and equipment are being depreciated on the straight-line basis and have a remaining useful life of 20 years. The deferred charges are being amortized over 4 years. During 2020, the year following the acquisition, White borrowed $100,000 from Black; $50,000 is still outstanding at year-end. No interest is being charged on the loan. Through the year, White sold goods to Black totaling $300,000. White's gross margin is 40% of selling price; 45% of these goods were sold by Black to its customers, for $500,000. Dividend declarations amounted to $150,000 by Black and $100.000 by White. There were no other intercompany traneactione.