ProForm acquired 60 percent of ClipRite on June 30, 2020, for $780,000 in cash. Based on ClipRite's acquisition-date fair value, an unrecorded intangible of $560,000 was recognized and is being amortized at the rate of $14,000 per year. No goodwill was recognized in the acquisition. The noncontrolling interest fair value was assessed at $520,000 at the acquisition date. The 2021 financial statements are as follows: Sales Cost of goods sold Operating expenses Dividend income Net income Retained earnings, 1/1/21 Net income Dividends declared Retained earnings, 12/31/21 Cash and receivables Inventory Investment in ClipRite Fixed assets Accumulated depreciation Totals Liabilities Common stock Retained earnings, 12/31/21 Totals ProForm ClipRite $ (840,000) $ (680,000) 555,000 140,000 (54,000) 420,000 120,000 0 $ (199,000) $ (140,000) $ (1,300,000) (199,000) 140,000 $ (1,359,000) 440,000 330,000 780,000 1,400,000 (500,000) $ (890,000) (140,000) 90,000 $ (940,000) 340,000 740,000 0 800,000 (250,000) $ 1,630,000 $ 2,450,000 (591,000) (500,000) (1,359,000) $(2,450,000) $ (190,000) (500,000) (940,000) $ (1,630,000) (Note: Parentheses indicate a credit balance.)