Plaza, Inc., acquires 80 percent of the outstanding common stock of Stanford Corporation on January 1, 2021, in exchange for $1,179,200 cash. At the acquisition date, Stanfords total fair value, including the noncontrolling interest, was assessed at $1,474,000. Also at the acquisition date, Stanford's book value was $631,300. Several individual items on Stanfords financial records had fair values that differed from their book values as follows: Book Value Fair Value Trade names (indefinite life) $ 329,900 $ 473,300 Property and equipment (net, 8-year remaining life) 259,200 288,800 Patent (14-year remaining life) 155,100 195,700 For internal reporting purposes, Plaza, Inc., employs the equity method to account for this investment. The following account balances are for the year ending December 31, 2021, for both companies. Plaza Stanford Revenues $ (1,007,000 ) $ (823,000 ) Cost of goods sold 556,700 363,100 Depreciation expense 235,900 32,400 Amortization expense 0 25,900 Equity in income of Stanford (316,000 ) 0 Net income $ (530,400 ) $ (401,600 ) Retained earnings, 1/1/21 $ (1,169,900 ) $ (485,500 ) Net income (530,400 ) (401,600 ) Dividends declared 275,300 37,000 Retained earnings, 12/31/21 $ (1,425,000 ) $ (850,100 ) Current assets $ 788,900 $ 396,000 Investment in Stanford 1,465,600 0 Trade names 220,300 329,900 Property and equipment (net) 945,500 226,800 Patents 0 129,200 Total assets $ 3,420,300 $ 1,081,900 Accounts payable $ (130,500 ) $ (86,000 ) Common stock (275,500 ) (76,000 ) Additional paid-in capital (1,589,300 ) (69,800 ) Retained earnings (above) (1,425,000 ) (850,100 ) Total liabilities and equities $ (3,420,300 ) $ (1,081,900 )