Plaza, Inc., acquires 80 percent of the outstanding common stock of Stanford Corporation on January 1, 2018, in exchange for $1,052,900 cash. At the acquisition date, Stanford's total fair value, including the noncontrolling interest, was assessed at $1,316,125 Also at the acquisition date, Stanford's book value was $543,900. Several individual items on Stanford's financial records had fair values that differed from their book values as follows: Book Value Fair Value s 284,600 422,200 Tradenames (indefinite life) Property and equipment (net, 8-year remaining life) Patent (14-year remaining life) 233,600 134,900 251,200 165,700 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, 2018, for both companies Plaza Stanford $(852,700)$(714,100) Revenues Cost of goods sold Depreciation expense Amortization expense Equity in income of Stanford 313,200 29,200 22,300 471,400 199,800 276,000 $(457,500) (349,400) Net income Retained earnings, 1/1/18 Net income Dividends declared $(1,009,100) (418,900) (457,500) (349,400) 237,400 $(1,229,200) 22,000 (746,300) Retained earnings, 12/31/18 Current assets Investment in Stanford Tradenames Property and equipment (net) Patents $680,500 1,311,300 190,000 815,500 $341,700 0 284,600 204,400 112,600 $ 943,300 Total assets $ 2,997,300