Required information On January 1, 2016, Pride Corporation purchased 90 percent of the outstanding voting shares of Star, Inc. for $507,000 cash. The acquisition-date fair value of the noncontrolling interest was $56,300. At January 1, 2016, Star's net assets had a total carrying amount of $394,100. Equipment (eight-year remaining life) was undervalued on Star's financial records by $51,200. Any remaining excess fair value over book value was attributed to a customer list developed by Star (four-year remaining life). but not recorded on its books. Star recorded net income of $44,800 in 2016 and $51,200 in 2017. Each year since the acquisition, Star has declared a $12,800 dividend. At January 1, 2018, Pride's retained earnings show a $160,000 balance. Selected account balances for the two companies from their separate operations were as follows: 2018 Revenues 2018 Expenses Pride $ 318,800 224,000 Star $ 182,400 124,800