Plaza, Inc., acquires 80 percent of the outstanding common stock of Stanford Corporation on January 1, 2018, in exchange for $1121,800 cash. At the acquisition date, Stanford's total fair value, including the noncontrolling interest, was assessed at $1,402,250 Also at the acquisition date, Stanford's book value was $606,600 Several individual items on Stanford's financial records had fair values that differed from their book values as follows Book Value Fair Value 318,8ee $ 442,600 277,600 Tradenames (indefinite life) Property and equipment (net, 8-year remaining life) Patent (14-year remaining life) 254,400 143,400 175,600 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. Consolidation Entries Noncontrolling Consolidat ed Accounts Plaza Debit Credit Interest Totals Stanford $ (903,700) S (812,600) 350,800 31,800 24,800 $ (1,716,300) 850,400 246,500 27,100 Revenues Cost of goods sold Depreciation expense Amortization expense Equity in income of Stanford Net income Consolidated net income 499,600 2,900 2,300 211,800 320,000 (320,000) S (512,300) (405,200) $ (592,300) 80,000 $ (512,300) $(1,129,900) (512,300) 265,800 $ (1,376,400) $ 1,145,100 NCI share of CNI (80,000 Plaza share of CNI Retained earnings, 1/1 (469,400) 469,400 1,129,900) (512,300) 265,800 Net income (405,200) 29,000 Dividends declared 23,200 5,800 1.376,400) (845,600) $ 762,300 382,800 Retained earnings, 12/31 Current assets 23,200 1,418,600 212,800 913,300 Investment in Stanford Tradenames 318,800 222,600 118,600 123,800 23,2002,900 2,2002,300 654,600 Property and equipment net 1,156,200 Patents 148,500 Goodwill Total assets Accounts payable Common stock Additional paid-in capital Noncontrolling interest Retained earnings, 12/31 Total liabilities and equities $3,307,000 S 1,042,800 (60,000) (98,000) (39,200) $ 3,104,400 (185,900) (265,900) (1,538,800) (125,900) (265,900) (1,538,800) 98,000 9,200 (1,376,400) $ (3,367,000) (1,376,400) (845,600) 3,307,000 1.134,200 28,400 1,042,800