Parker, Inc., acquires 70 percent of Sawyer Company for $420,000. The remaining 30 percent of Sawyer's outstanding shares continue to trade at a collective value of $174,000. On the acquisition date, Sawyer has the following accounts:

Book ValueFair ValueCurrent

assets $210,000 $210,000

Land 170,000 180,000

Buildings 300,000 330,000

Liabilities (280,000) (280,000)

The buildings have a 10-year remaining life. In addition, Sawyer holds a patent worth $140,000 that has a five-year remaining life but is not recorded on its financial records. At the end of the year, the two companies report the following balances:

Parker Sawyer

Revenues $(900,000) $(600,000)