On December $31,$ Year $2,$ Palm Inc. purchased $80\%$ of the outstanding ordinary shares of Storm Company for $$420,000.$ At that date, Storm had ordinary shares of $$310,000$ and retained earnings of $$71,000.$ In negotiating the purchase price, it was agreed that the assets on Storm's statement of financial position were fairly valued except for plant assets, which had a $$51,000$ excess of fair value over carrying amount. It was also agreed that Storm had unrecognized intangible assets consisting of trademarks that had an estimated value of $$18,000.$ The plant assets had a remaining useful life of eight years at the acquisition date and the trademarks would be amortized over a $12-$year period. Any goodwill arising from this business combination would be tested periodically for impairment. Palm accounts for its investment using the cost method.

Financial statements for Palm and Storm for the year ended December $31,$ Year $6,$ were as follows:

$\backslash$table$[[\backslash$table$[[$STATEMENTS OF FINANCIAL POSITION$],[$December $31,$ Year $6]],$Palm,Storm$],[$Assets$],[$Plant assets $($net$),$$$340,000,$$$270,000$