on january 1, 2019, pride corporation purchased 90 percent of the outstanding voting shares of star, inc., for $576,000 cash. the acquisition-date fair value of the noncontrolling interest was $64,000. at january 1, 2019, star’s net assets had a total carrying amount of $448,000. equipment (eight-year remaining life) was undervalued on star’s financial records by $61,600. 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 $53,900 in 2019 and $61,600 in 2020. each year since the acquisition, star has declared a $15,400 dividend. at january 1, 2021, pride’s retained earnings show a $192,500 balance. selected account balances for the two companies from their separate operations were as follows: pride star 2021 revenues $ 383,500 $ 219,500 2021 expenses 269,600 150,200