On January 2, 2018, Company P acquired all of the outstanding voting stock of Company S in exchange for $6,000 in stock. Company P elected to exercise control over Company S as a wholly-owned subsidiary with an independent accounting system. Both companies have December 31 year ends. At the acquisition date, Company S has a stockholder's equity of $2,500, which includes Retained Earnings of $1,700. Company P pursued the acquisition, in part, to utilize Company S technology and computer software. These items had fair values that differed from their values on Company S books as follows:

asset	book value	fair value	remaining useful life
patented technol.	140	2240	7 yr
computer software	60	1260	12 yr

At December 31 2020, Company S owes Company P $30. Company S remaining identifiable assets and liabilities had acquisiiton-date book values that closely approximated fair values. Since acquisition, no assets have been impaired. During the next three years, Company S reported the following income and dividends:

yr	net income	dividend
2018	900	150
2019	940	150
2020	975	150

Prepare the analysis as of acquisition date including unamortized differential at 1/1/18 and through 2020.

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Answer rating: 100% (QA)

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