Plaza, lnc., acquires 80 percent of the outstanding common stock of Stanford Corporation on January 1, 2021, in exchange for $900,000 cash. At the acquisition date, Stanford's total fair value, including the noncontrolling interest, was assessed at $1,125,000. Also at the acquisition date, Stanford's to ok value was $690,000. Several individual items on Stanford's nancial records nad fair values that differed from their book values as follows: Book Value Fair Value Trade names (indefinite life) $ 368,800 $ 383,800 Property and equipment (net, 3year remaining life) 298,800 338,800 Patent (14year remaining life) 132,800 2?2,800 For internai reporting purposes, Plaza, lnc., 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 Stanford Revenues $6,408,800) $ (825,800) Cost of goods sold 774,800 395,?50 Depreciation expense 328,800 36,250 Amortization expense 0 28,800 Equity in income of Stanford (288,800) 0 Net income 5 (578,800) 5 (365,800) Retained earnings, lili'21 $(1,275,800) $ (538,800) Net income (578,800) (365,800) Dividends declared 308,800 58,800 Retained earnings, 12,-\"31J21 $(1,553,800) 5 ($45,800) Current assets $ 868,800 $ 432,250 Investment in Stanford 1,148,800 0 Trade names 248,800 368,800 Property and equipment (net) 1,038,800 253,750 Patents 0 104,800 Total assets E 3,278,8w $ 1,159,942 Accounts payable $ (142,800) $ (145,800) Common stock (308,800) (128,800) Additional paidin capital (1,275,800) (48,800) Retained earnings (above) 111,553,800) (845,800) Total liabilities and equities $(3,278,800) $(1,158,800) At yearen (1 there were no intraentity receivables or payables.