Plaza, Inc., acquires 80 percent of the outstanding common stock of Stanford Corporation on January 1, 2021, in exchange for $920,700 cash. At the acquisition date, Stanfords total fair value, including the noncontrolling interest, was assessed at $1,150,875. Also at the acquisition date, Stanford's book value was $492,500.

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)	$	253,300			$	371,100
Property and equipment (net, 8-year remaining life)		208,800				227,200
Patent (14-year remaining life)		119,800				152,000

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	$	(782,200	)		$	(630,400	)
Cost of goods sold		432,400				278,800
Depreciation expense		183,300				26,100
Amortization expense		0				19,900
Equity in income of Stanford		(240,800	)			0
Net income	$	(407,300	)		$	(305,600	)
Retained earnings, 1/1/21	$	(898,300	)		$	(372,900	)
Net income		(407,300	)			(305,600	)
Dividends declared		211,400				23,000
Retained earnings, 12/31/21	$	(1,094,200	)		$	(655,500	)
Current assets	$	605,900			$	304,200
Investment in Stanford		1,143,100				0
Trade names		169,200				253,300
Property and equipment (net)		726,200				182,700
Patents		0				99,900
Total assets	$	2,644,400			$	840,100
Accounts payable	$	(100,100	)		$	(65,000	)
Common stock		(211,400	)			(114,000	)
Additional paid-in capital		(1,238,700	)			(5,600	)
Retained earnings (above)		(1,094,200	)			(655,500	)
Total liabilities and equities	$	(2,644,400	)		$	(840,100	)