Palms Corporation acquired 75 percent of Delta Company's ownership on January 1, 2021, for $672,000. At that date, the fair value of the noncontrolling interest was $224,000. The book value of Delta's net assets at acquisition was $700,000. The book values and fair values of Delta's assets and liabilities were equal, except for Delta's buildings and equipment, which were worth $140,000 more than book value. Buildings and equipment are depreciated on a 10- year basis. Although goodwill is not amortized, the management of Palms concluded at December 31, 2021, that goodwill from its purchase of Delta shares had been impaired and the correct carrying. amount was $17,500. Trial balance data for Palms and Delta on December 31, 2021, are as follows: Palms Delta Debit Credit Debit Credit Cash $332,500 $ 147,000 Accounts Receivable 490,000 84,000 Inventory 630,000 175,000 Land 210,000 105,000 Buildings & Equipment 2,450,000 1,050,000 Investment in Delta Co. Stock 674,625 Cost of Goods Sold 1,169,000 959,000 Depreciation Expense 175,000 70,000 Interest Expense 84,000 28,000 Other Expenses 94,500 35,000 Dividends Declared 210,000 112,000 Accumulated Depreciation $1,015,000 $280,000 Accounts Payable 434,000 175,000 Notes Payable 1,050,000 350,000 Common Stock Retained Earnings Sales 1,400,000 714,000 1,820,000 420,000 280,000 1,260,000 Income from Subsidiary 86,625 $6,519,625 $6,519,625 $2,765,000 $2,765,000