The financial statements for CAP Inc. and SAP Company for the year ended December 31, Year 5, follow: CAP Revenues Expenses $ 902,000 SAP $ 302,000 661,000 201,000 Profit $ 241,000 $ 101,000 Retained earnings, 1/1/Year 5 Profit $ 801,000 $ 202,000 241,000 Dividends paid 91,000 Retained earnings, 12/31/Year 5 $ 951,000 Equipment (net) Patented technology (net) Receivables and inventory Cash Total assets Ordinary shares Retained earnings Liabilities Total equities and liabilities $ 701,000 901,000 401,000 81,000 $2,084,000 $ 532,000 951,000 601,000 $2,084,000 101,000 0 $ 303,000 $ 601,000 302,000 171,000 111,000 $1,185,000 $ 471,000 303,000 411,000 $1,185,000 On December 31, Year 5, after the above figures were prepared, CAP issued $301,000 in debt and 14,000 new shares to the owners of SAP to purchase all of the outstanding shares of that company. CAP shares had a fair value of $41 per share. CAP also paid $30,500 to a broker for arranging the transaction. In addition, CAP paid $41,000 in stock issuance costs. SAP's