The following are preliminary financial statements for Black Co. and Blue Co. for the year ending December 31, 20X1 prior to Black's acquisition of Blue. Blue Co. $228,000 Black Co. Sales Expenses $360,000 (240,000) (132,000) Net income $120.000 $ 96,000 Retained earnings, January 1, 20X1 $480,000 $252,000 Net income (from above) 120,000 96,000 Dividends paid (36,000) -0- Retained earnings, December 31, 20X1 $564,000 $348.000 Current assets $360,000 $120,000 Land 120,000 108,000 Building (net) 480.000 336.000 Total assets Liabilities Common stock $960,000 $564.000 $108,000 $132,000 192.000 72,000 Additional paid-in capital Retained earnings, December 31,20X1 Total liabilities and stockholders' equity. 96,000 12,000 564.000 348,000 $960,000 564.000 On December 31, 20X1 (subsequent to the preceding statements), Black exchanged 10,000 shares of its $10 par value common stock for all of the outstanding shares of Blue. Black's stock on that date has a fair value of $60 per share. Black was willing to issue 10,000 shares of stock because Blue's land was appraised at $204,000. Black also paid $14,000 to several attorneys and accountants who assisted in creating this combination.