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 Black White Cash $ 100,000 $ 80,000 Accounts and other receivables 50,000 120,000 Inventories 110,000 150,000 Building and equipment 1,600,000 800,000 Accumulated depreciation - 800,000 - 400,000 Deferred charges - 120,000 $ 1,060,000 $ 870,000 Accounts and other payables $ 150,000 $ 80,000 Bonds payable - 300,000 Deferred income taxes 60,000 30,000 Common shares 750,000 250,000 Retained earnings 100,000 210,000 $ 1,060,000 $ 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.