The Hotz Corporation acquired 80 percent of the 100,000 outstanding voting shares of Devine, Inc., .for $6.40 per share on January 1 2017. The remaining 20 percent of Devine's shares also traded actively at $6.40 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 future life was undervalued by $62,000 and a fully amortized trademark with arn estimated 10-year remaining life had a $67,000 fair value. At the acquisition date, Devine reported common stock of $100,000 and a retained earnings balance of $260,000. Following are the separate financial statements for the year ending December 31, 2018 Holtz Devine, CorporationInc. (787,900) $(392,800) Sales Cost of goods.sold Operating expenses Dividend income 282,000 346,000 (16,080) 105,800 117,809 Net income Retained earnings,1/1/18 Net income (above) Dividends declared S (175,000) $(170,000) (727,800) (330,000) (175,000) (176,800) 58,999 26,999 $ (852,000) (480,000) S 379,500 162,000 Retained earnings, 12/31/18 Current assets Investment in Devine, Inc Buildings and equipment (net) Trademarks 512,000 785,080 422,90 148,0286,909 s 1,824,580 798,90 Total assets Liabilities Common stock Retained earnings, 12/31/18 (above) (652,560) $(210,800) (320,090) (180,000) (852,080) (488,908) Total liabilities and equlties $(1,824,500) $(790,000) At year-end, there were no intra-entity receivables or payables