ProForm acquired 70 percent of ClipRite on June 30, 2017, for $1,470,000 in cash. Based on ClipRite's acquisition-date fair value, an unrecorded intangible of $600,000 was recognized and is being amortized at the rate of $19,000 per year. No goodwill was recognized in the acquisition. The noncontrolling interest fair value was assessed at $630,000 at the acquisition date. The 2018 financial statements are as follows ProForm ClipRite Sales Cost of goods sold Operating expenses Dividend income $(1,030,000)(1,060,000) 515,000 215,000 650,000 330,000 56,000) $ (106,000) (106,000) $ (3,576,000) Net income $ (330,000) Retained earnings, 1/1/18 Net income Dividends declared $ (3,800,000) (1,080,000) (330,000) 330,000 80,000 $ (1,330,000) Retained earnings, 12/31/18 Cash and receivables Inventory Investment in ClipRite Fixed assets Accumulated depreciation $ 630,000 520,000 1,470,000 2,200,000 $ 530,000 930,000 1,750,000 400,000) 700,000) $ 4,420,000 2,510,000 Totals Liabilities Common stock Retained earnings, 12/31/18 $ (544,000) (300,000) 3,576,000) $ (4,420,000) $ (880,000) (300,000) (1,330,000) $ (2,510,000) Totals