Planet Inc. (Planet) purchased 100% of the outstanding voting shares of Sol Company (Sol) for $420,000 on January 1, 2022. On that date, Sol had common shares and retained earnings worth $100,000 and $233,000, respectively. On acquisition date, the plant assets and patent had a remaining useful life of 8 years and 10 years, respectively. Both the plant assets and patent are amortized on a straight-line basis. The bonds payable mature on December 31, 2030, pay interest annually, and are amortized using the effective interest rate method. The market rate of interest for similar bonds is 8%. The balance sheets of both companies, as well as Sol's fair market values on the date of acquisition are disclosed below: Planet Inc. Sol Company Sol Company (carrying value) (carrying value) (fair value) Cash $150,000 $84,000 $84,000 Accounts 85,000 65,000 65,000 receivable Inventory 55,000 34,000 45,000 Plant assets (net) 850,000 220,000 240,000 Patent 70,000 84,000 Total assets $1,140,000 $473,000 Current liabilities $220,000 $80,000 80,000 Bonds payable, 400,000 60,000 67,496 10% Common shares 200,000 100,000 Retained earnings 320,000 233,000 Total liabilities and $1,140,000 $473,000