On January $1,2024,$ Casey Corporation exchanged $$3,300,000$ cash for $100$ percent of the outstanding voting stock of Kennedy Corporation. Casey plans to maintain Kennedy as a wholly owned subsidiary with separate legal status and accounting information systems. At the acquisition date, Casey prepared the following fair$-$value allocation schedule: Fair value of Kennedy $($consideration transferred$)$ $ $3,300,000$ Carrying amount acquired $2,600,000$ Excess fair value $ $700,000$ to buildings $($undervalued$)$ $ $382,000$ to licensing agreements $($overvalued$)(108,000)274,000$ to goodwill $($indefinite life$)$ $ $426,000$ Immediately after closing the transaction, Casey and Kennedy prepared the following post acquisition balance sheets from their separate financial records $($credit balances in parentheses$).$ Accounts Casey Kennedy Cash $ $457,000$ $ $172,500$ Accounts receivable $1,655,000347,000$ Inventory $1,310,000263,500$ Investment in Kennedy $3,300,0000$ Buildings $($net$)6,315,0002,090,000$ Licensing agreements $03,070,000$ Goodwill $347,0000$ Total assets $ $13,384,000$ $ $5,943,000$ Accounts payable $ $(394,000)$ $ $(393,000)$ Long$-$term debt $(3,990,000)(2,950,000)$ Common stock $(3,000,000)(1,000,000)$ Additional paid$-$in capital $0(500,000)$ Retained earnings $(6,000,000)(1,100,000)$ Total liabilities and equities $ $(13,384,000)$ $ $(5,943,000)$