Questions 11-15 are based on the following:

Rose Corporation acquired 100 percent of Lilly Companys outstanding common stock on January 1, for $880,000 in cash. Lilly reported net assets with a carrying amount of $560,000 at that time. Some of Lillys assets had fair values that differed from book values as follows:

	Book Values		Fair Values
Trademarks (indefinite life)	$	96,000	$	256,000
Customer relationships (5-year life)		0		120,000
Equipment (10-year life)		547,200		499,200

Rose computed income from Lilly using the Equity Method.

Following are financial statements at the end of the first year for these two companies prepared from their separately maintained accounting systems. Credit balances are indicated by parentheses.

	Rose		Lilly
Revenues	$	(1,800,000)	$	(832,000)
Cost of goods sold		480,000		364,800
Depreciation expense		120,000		112,000
Amortization expense		40,000		0
Income from Lilly		(336,000)		0
Net income	$	(1,496,000)	$	(355,200)
Retained earnings 1/1	$	(1,120,000)	$	(400,000)
Net income		(1,496,000)		(355,200)
Dividends paid		227,200		128,000
Retained earnings 12/31	$	(2,388,800)	$	(627,200)
Cash	$	296,000	$	168,000
Receivables		360,000		89,600
Inventory		280,000		216,000
Investment in Lilly		1,088,000		0
Trademarks		758,400		96,000
Customer relationships		0		0
Equipment (net)		1,480,000		435,200
Goodwill		0		0
Total assets	$	4,262,400	$	1,004,800
Liabilities	$	(1,233,600)	$	(217,600)
Common stock		(640,000)		(160,000)
Retained earnings 12/31		(2,388,800)		(627,200)
Total liabilities and equity	$	(4,262,400)	$	(1,004,800)

1)Determine the amount of Amortization Expense to be reported for this business combination for the year ending December 31.

2)Determine the amount of Depreciation Expense to be reported for this business combination for the year ending December 31.

3)Determine the amount of Income from Lilly to be reported for this business combination for the year ending December 31.

4)Determine the amount of Dividends Paid to be reported for this business combination for the year ending December 31.

5)Determine the amount of Reatained Earnings to be reported for this business combination at December 31.