Problem

Utopia Corporation paid $$620,000$ to acquire $7,000$ shares $(70\%)$ of the outstanding shares of $B$ Corporation on January $1,$ Year$-2.$ B Corp's shares were trading for $$20$ per share prior to this acquisition.

The Statement of Financial Position of B Corp on January $1,$ Year$-2$ was as follows:

$\backslash$table$[[$BCorp $-$ Statement of Financial Position$],[,,$Fair Value$],[$Cash$,520,000,520,000],[$Accounts Receivable,$360,000,300,000],[$Inventory$,164,000,94,000],[$Plant$,345,000,450,000],[$Accumulated Depreciation,$45,000,100,000],[$Patent $($net$),27,000,30,000],[$Total$,1,371,000,1,294,000$