On July 1, 2015, Truman Company acquired a 70 percent interest in Atlanta Company in exchange for consideration of $788,900 in cash and equity securities. The remaining 30 percent of Atlanta's shares traded closely near an average price that totaled $338,100 both before and after Truman's acquisition. In reviewing its acquisition, Truman assigned a $129,500 fair value to a patent recently developed by Atlanta, even though it was not recorded within the financial records of the subsidiary. This patent is anticipated to have a remaining life of five years The following financial information is available for these two companies for 2015. In addition, the subsidiary's income was earned uniformly throughout the year. Subsidiary dividend payments were made quarterly Truman Atlanta (533,000) (785,065) Revenues 333,000 Operating expenses 486,000 Income of subsidiary (60,935) (360,000) (200,000) Net income (535,000) (911,000) Retained earnings, 1/1/15 (360,000) Net income (above) 00,000 70,000 Dividends declared 170,000 $(1,101,000) (665,000) Retained earnings, 12/31/15 Current assets 392,665 415,000 Investment in Atlanta 825,335 283,000 Land 435,000 697,000 Buildings 775,000 2,428,000 1,395,000 Total assets (827,000) (410,000) Liabilities Common stock (95,000) (300,000) Additional paid-in capital (405,000) 0,000 (665,000) Retained earnings, 12/31/15 (1,101,000) $(1,395,000) Total liabilities and stockholders' equity $(2,428,000)