Father, Inc., buys 80 percent of the outstanding common stock of Sam Corporation on January 1, 2013, for $680,000 cash. At the acquisition date, Sam's total fair value, including the noncontrolling interest, was assessed at $850,000 although Sam's book value was only $600,000. Also, several individual items on Sam's financial records had fair values that differed from their book values as follows:

____________________________________Book Value_____________ Fair Value

Land . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 60,000.......................$ 225,000

Buildings and equipment

(10-year remaining life) . . . . . . . . . . . . . . . . . . . 275,000........................250,000

Copyright (20-year life) . . . . . . . . . . . . . . . . . . . 100,000........................200,000

Notes payable (due in 8 years) . . . . . . . . . . . . . (130,000) .....................(120,000)

For internal reporting purposes, Father, Inc., employs the equity method to account for this investment.

The following account balances are for the year ending December 31, 2013, for both companies. Using the acquisition method, determine consolidated balances for this business combination (through either individual computations or the use of a worksheet).

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Father $(1,360,000) $(540,000) Cost of goods sold Depreciation expense Amortization expense Interest expense Equity in income of Sam 700,000 260,000 385,000 10,000 5,000 5,000 44,000 (105,000) Net income $ (461,000) (135,000) Retained earnings, 1/1/13 Net income (above) Dividends paid (1,265,000) 440,000) (135,000) 65,000 (461,000) 260,000 1466000) 510,000 965,000 528,000 Retained earnings, 12/31/13 Current assets Investment in Sam Land Buildings and equipment (net) Copyright 733,000 292,000 877,000 60,000 265,000 95,000 Total assets Accounts payable Notes payable Common stock Additional paid-in capital Retained earnings (above) 52,867,000 948,000 (191,000) 148,000) (460,000) (300,000) (450,000) (130,000) (100,000) (60,000) 510,000 (2,867,000) (948,000) (1.466,000) Total liabilities and equities