The condensed financial statements for OIL Inc. and ERS Company for the year ended December 31, Year 5, follow: OIL ERS Revenues Expenses Net income Retained earnings, 1/1/Year 5 Net income Dividends paid Retained earnings, 12/31/Year 5 Cash Receivables and inventory Patented technology (net) Equipment (net) Total assets Liabilities Common shares Retained earnings Total liabilities and equities $ 936,000 $ 324,000 672,000 212,000 $ 264,000 $ 112,000 $ 812,000 $ 212,000 264,000 102,000 112,000 0 $ 974,000 $ 324,000 92,000 $ 122,000 412,000 912,000 182,000 318,000 712,000 $2,128,000 $ 612,000 542,000 974,000 $2,128,000 612,000 $1,234,000 $ 428,000 482,000 324,000 $1,234,000 On December 31, Year 5, after the above figures were prepared, OIL issued $252,000 in debt and 16,000 new shares to the owners of ERS for 80% of the outstanding shares of that company. OIL shares had a fair value of $32 per share. OIL also paid $42,000 to a broker for arranging the transaction. In addition, OIL paid $44,000 in stock issuance costs. ERS's equipment was actually worth $714,000, but its patented technology was appraised at only $292,000.