Plaza, Inc., acquires 80 percent of the outstanding common stock of Stanford Corporation on January 1, 2018, in exchange for $941,800 cash. At the acquisition date, Stanford's total fair value, including the noncontrolling interest, was assessed at $1,177,250 Also at the acquisition date, Stanford's book value was $546,100 Several individual items on Stanford's financial records had fair values that differed from their book values as follows: Book Value Fair Value Tradenames (indefinite Property and equipment (net, 8-year 300,900 360,900 remaining life) Patent (14-year remaining life) 233,600 120,900 262,400 154,500 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, 2018, for both companies. Plaza Stanford $(795,100) $ (782,600) Revenues Cost of goods sold Depreciation expense Amortization expense Equity in income of Stanford 439,600 186,400 331,000 29,200 23,400 314,400 Net income $ (483,500) (399,000) Retained earnings, 1/1/18 Net income Dividends declared $ (1,066,500) (443,000) (399,000) (483,500) 250,900 $(1,299,100) 36,000 Retained earnings, 12/31/18 (806,000) $719,400361,300 Current assets Investment in Stanford Tradenames Property and equipment (net) Patents 1,227,400 200,800 861,800 300,900 204,400 97,500 $ 964,100 Total assets $ 3,009,400 Accounts payable Common stock Additional paid-in capital Retained earnings (above) $ (118,800) (55,000) (90,000) (13,100) (250,900) (1,340,600) 1,299,100) (806,000 Total liabilities and equities $(3,009,400) (964,100)