Pavin acquires all of Stablers outstanding shares on January 1, 2015, for $550,000 in cash. Of this amount, $39,000 was attributed to equipment with a 10-year remaining life and $49,000 was assigned to trademarks expensed over a 20-year period. Pavin applies the partial equity method so that income is accrued each period based solely on the earnings reported by the subsidiary. On January 1, 2018, Pavin reports $390,000 in bonds outstanding with a carrying amount of $366,000. Stabler purchases half of these bonds on the open market for $189,000. During 2018, Pavin begins to sell merchandise to Stabler. During that year, inventory costing $116,000 was transferred at a price of $145,000. All but $19,000 (at sales price) of these goods were resold to outside parties by year-end. Stabler still owes $42,000 for inventory shipped from Pavin during December. The following financial figures are for the two companies for the year ending December 31, 2018. Dividends were both declared and paid during the current year.

Stabler $ (523,000) Pavin Revenues Cost of goods sold Expenses Interest expense-bonds Interest income-bond investment Loss on extinguishment of bonds Equity in Stabler's income $ (767,000) 464,000 134,000 45,000 249,000 167,500 (21,750) (128,250 $ (252,250) $ (354,000) $ (128,250) $ (379,000) (128,250) Net income Retained earnings, 1/1/18 Net income Dividends paid (252,250) 164,000 86,000 $ (442,250) $ 226,000 $ (421,250) Retained earnings, 12/31/18 Cash and receivables Inventory Investment in Stabler Investment in Pavin bonds Land, buildings, and equipment (net) Trademarks $ 44, 000 96,000 184,000 638,250 189,750 550,000 254,000 Total assets $ 1,302,250 $ 879,750 Accounts payable Bonds payable Discount on bonds Common stock Retained earnings (above) $ (173,000) ? (220,500) (390,000) 21,000 (318,000) (109,000) (129,000) $ (879,750) (442,250)__(421,250 $ (1,302,250) Total liabilities and stockholders' equity Note: Credits are indicated by parentheses