Please see attached file.

Haynes, Inc., obtained 100 percent of Turner Company?s common stock on January 1, 2014, by issuing 11,300 shares of $10 par value common stock. Haynes?s shares had a $15 per share fair value. On that date, Turner reported a net book value of $126,000. However, its equipment (with a five-year remaining life) was undervalued by $8,200 in the company?s accounting records. Also, Turner had developed a customer list with an assessed value of $35,300, although no value had been recorded on Turner?s books. The customer list had an estimated remaining useful life of 10 years.

The following figures come from the individual accounting records of these two companies as of December 31, 2014:

	Haynes	Turner
Revenues		$	(648,000	)			$	(360,000	)
Expenses			486,000					173,000
Investment income			Not given					0
Dividends declared			80,000					90,000

The following figures come from the individual accounting records of these two companies as of December 31, 2015:

	Haynes	Turner
Revenues		$	(845,000	)			$	(412,750	)
Expenses			515,800					207,200
Investment income			Not given					0
Dividends declared			90,000					80,000
Equipment			512,000					367,000