Plaza, Inc., acquires 80 percent of the outstanding common stock of Stanford Corporation on January 1, 2021, in exchange for $1,116,600 cash. At the acquisition date, Stanford's total fair value, including the noncontrolling interest, was assessed at $1,395,750. Also at the acquisition date, Stanford's book value was $586,300. Several individual items on Stanford's financial records had fair values that differed from their book values as follows: Trade names (indefinite life) Property and equipment (net, 8-year remaining life) Patent (14-year remaining life) Book Value Fair Value $300,700 $452,800 230,400 149,900 262,400 184,900 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. Revenues Cost of goods sold Depreciation expense Amortization expense Equity in income of Stanford Net income Retained earnings, 1/1/21 Net income Dividends declared Retained earnings, 12/31/21 Current assets Investment in Stanford Trade names Property and equipment (net) Patents Total assets Accounts payable Common stock Additional paid-in capital Retained earnings (above) Total liabilities and equities Plaza $ (951,600) 526,100 223,100 Stanford $ (740,500) 0 (280,800) $ (483,200) $ (1,065,800) (483,200) 250,800 $(1,298,200) $ 718,900 1,365,400 200,600 860,900 0 $ 3,145,800 $ (118,700) (250,700) (1,478,200) (1,298,200) $(3,145,800) 330,800 28,800 23,400 0 $ (357,500) $ (442,600) (357,500) 40,000 $ (760,100) $ 361,000 300,700 201,600 126,500 $ 989,800 (86,000) (86,000) (57,700) (760,100) $ (989,800)