Plaza, Inc., acquires 80 percent of the outstanding common stock of Stanford Corporation on January 1, 2018 in exchange for $920,700 cash. At the acquisition date, Stanford's 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.

Plaza, Inc., acquires 80 percent of the outstanding common stock of Stanford Corporation on January 1, 2018, in exchange for $920,700 cash. At the acquisition date, Stanford's 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 Stanford's financial records had fair values that differed from their book values as follows: 253,38 371,108 Tradenames (indefinite 1ife) Property and equipment (net, 8-year remaining life) Patent (14-year remaining life) 288,880 119,888 227,288 152,8e8 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 $ (782,280) $(638,488) Revenues Cost of goods sold Depreciation expense Amortization expense Equity in income of Stanford 432,488 183,38e 278,888 26,188 19,988 (248,898) Net income $ (487,300) (385,688) Retained earnings, 1/1/18 Net income Dividends declared $ (898,308) (372,9e8) (487,308) (385,688) 23,808 Retained earnings, 12/31/18 $(1,094,280) (655,588) $685,908 384,288 Current assets Investment in Stanford Tradenames Property and equipment (net) Patents 1,143,188 169, 288 726,288 253, 30e 182,788 99,988 Total assets $ 2,644,488 848,188 Accounts payable Common stock Additional paid-in capital Retained earnings (above) $ (188,188) $(65,8e8) (114,e08) (5,688) 1,894,20)(655,598) $(2,644,488) (848,188) (211,488) (1,238,788) Total liabilities and equities