The Holtz Corporation acquired 80 percent of the 100,000 outstanding voting shares of Devine, Inc., for $6.00 per share on January 1, 2014. The remaining 20 percent of Devine's shares also traded actively at $6.00 per share before and after Holtz's acquisition. An appraisal made on that date determined that all book values appropriately reflected the fair values of Devine's underlying accounts except that a building with a 5-year life was undervalued by $70,500 and a fully amortized trademark with an estimated 10-year remaining life had a $62,000 fair value. At the acquisition date, Devine reported common stock of $100,000 and a retained earnings balance of $158,500 Following are the separate financial statements for the year ending December 31, 2015 Devine Holtz Corporation Sales Cost of goods sold Operating expenses Dividend income S (731,000) $(316,000) 276,000 149,000 83,000 261,000 (16,000) Net income S (210,000) S (84,000) Retained earnings, 1/1/15 Net income (above) Dividends declared S (748,000 (228,500) (210,000 (84,000) 20,000 60,000 Retained earnings, 12/31/15 $ (898,000 (292,500) Current assets Investment in Devine, Inc Buildings and equipment (net) Trademarks $ 372,500 $ 170,500 480,000 720,000 324000 193,000 153,000 Total assets $1,765,500 $ 647,500 Liabilities Common stock Retained earnings, 12/31/15 (above) S (547,500) (255,000) (320,000 (100,000) (898,000) (292,500) Total liabilities and equities S(1,765,500) (647,500)