See the helpful tip below the question: Phillips Company purchased a 90% interest in Standards Corporation for $2,340,000 on January 1, 2016.

Phillips Company purchased a 90% interest in Standards Corporation for $2,340,000 on January 1, 2016. Standards Corporation had $1,650,000 of common stock and $1,050,000 of retained earnings on that date.

The following values were determined for Standards Corporation on the date of purchase: