Use the following information to answer questions 7 and 8 On January 1, 2016, Pride Corporation purchased 90 percent of the outstanding voting shares of Star, Inc. for $437,000 cash. The acquisition-date fair value of the noncontrolling interest was $48,600. At January 1, 2016, Star's net assets had a total carrying amount of $340,200. Equipment (eight-year remaining life) was undervalued on Star's financial records by $63,200. Any remaining excess fair value over book value was attributed to a customer list developed by Star (four-year remaining life), but not recorded on its books. Star recorded net income of $55,300 in 2016 and $63,200 in 2017. Each year since the acquisition, Star has declared a $15,800 dividend. At January 1, 2018, Pride's retained earnings show a $197,500 balance. Selected account balances for the two companies from their separate operations were as follows: 2018 Revenues 2018 Expenses Pride 393,500 276,600 Star $ 225, 200 154,100