Plaza, Inc, acquires 80 percent of the outstanding common stock of Stanford Corporation on January 1, 2021. In exchange for $1119,100 cash At the acquisition date Stanford's total fair value, including the noncontrolling interest, was assessed at $1.398,875 Also at the acquisition date, Stanford's book value was $575,300. Several individual items on Stanford's financial records had fair values that differed from their book values as follows: Book Value Fair Value Trade names indefinite life) $286, 380 $463, eee Property and equipment (net, B-year remaining life) 224,800 255, 2ee Patent (14-year remaining life) 152,400 199, 2ee 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 $(978,880) 541,180 229,490 Stanford $ (687,100) 315,180 28,180 22, 4ee 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 (252,000) $(460,380) $ (321,580) $(1,015, 200) (460,380) 238,900 $(1,236,600) $(421,500) (321, 50) 38,Bee $ 785,000) Current assets Investment in Stanford Trade nanes Property and equipment (net) Patents Total assets 684,800 1,340,700 191.200 820,600 $ 343,800 @ 286,300 196,700 130,000 $ 956,800 $ 3,037,300 Accounts payable Connon stock Additional paid in capital Retained earnings (above) Total liabilities and equities $ (113, 100) (238,900) (1,448,700) (1.236.600) $(3,037,300) $(98,000) (116,000) (37.800) (705,000) 5 (956,880) Plaza, Inc, acquires 80 percent of the outstanding common stock of Stanford Corporation on January 1, 2021. In exchange for $1119,100 cash At the acquisition date Stanford's total fair value, including the noncontrolling interest, was assessed at $1.398,875 Also at the acquisition date, Stanford's book value was $575,300. Several individual items on Stanford's financial records had fair values that differed from their book values as follows: Book Value Fair Value Trade names indefinite life) $286, 380 $463, eee Property and equipment (net, B-year remaining life) 224,800 255, 2ee Patent (14-year remaining life) 152,400 199, 2ee 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 $(978,880) 541,180 229,490 Stanford $ (687,100) 315,180 28,180 22, 4ee 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 (252,000) $(460,380) $ (321,580) $(1,015, 200) (460,380) 238,900 $(1,236,600) $(421,500) (321, 50) 38,Bee $ 785,000) Current assets Investment in Stanford Trade nanes Property and equipment (net) Patents Total assets 684,800 1,340,700 191.200 820,600 $ 343,800 @ 286,300 196,700 130,000 $ 956,800 $ 3,037,300 Accounts payable Connon stock Additional paid in capital Retained earnings (above) Total liabilities and equities $ (113, 100) (238,900) (1,448,700) (1.236.600) $(3,037,300) $(98,000) (116,000) (37.800) (705,000) 5 (956,880)