On July 1, 2018, Truman Company acquired a 70 percent interest in Atlanta Company in exchange for consideration of $756,525 in cash and equity securities. The remaining 30 percent of Atlanta's shares traded closely near an average price that totaled $324,225 both before and after Truman's acquisition. In reviewing its acquisition, Truman assigned a $130,500 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 2018. In addition, the subsidiary's income was earned uniformly throughout the year. The subsidiary declared dividends quarterly. Revenues Operating expenses Income of subsidiary Net income Retained earnings, 1/1/18 Net income (above) Dividends declared Retained earnings, 12/31/18 Current assets Investment in Atlanta Land Buildings Total assets Truman Atlanta $ (811,435) $ (507,000) 474,000 (54,565) 325,000 0 $ (392,000) $ (182,000) $ (919,000) $ (502,000) (392,000) (182,000) 140,000 $ (1,171,000) $ 90,000 (594,000) $ 579,410 $ 421,000 779,590 0 478,000 746,000 275,000 666,000 $ 2,583,000 $ 1,362,000 Liabilities Common stock Additional paid-in capital Retained earnings, 12/31/18 Total liabilities and stockholders' equity $ (912,000) $ (448,000) (95,000) (405,000) (1,171,000) (300,000) (20,000) (594,000) $(2,583,000) $ (1,362,000)