Pot Inc. acquired all Seed Inc.’s outstanding $25 par common stock on December 31, 20X3, in exchange for 40,000 shares of its $25 par common stock. Pot’s common stock closed at $56.50 per share on a national stock exchange on December 31, 20X3. Both corporations continued to operate as separate businesses maintaining separate accounting records with years ending December 31.On December 31, 20X4, after year-end adjustments and the closing of nominal accounts, the companies had condensed balance sheet accounts (below). Pot Inc. Seed Inc. Common Stock $2,200,000 $1,000,000 Additional Paid-In Capital 840,000 190,000 Retained Earnings 3,166,000 820,000 $6,206,000 $2,010,000 Pot Inc. Seed Inc. Assets Cash $ $ 825,000 $ 330,000Accounts & Other Receivables 2,140,000 835,000 Inventories 2,310,000 1,045,000 Land 650,000 300,000 Depreciable Assets (net) 4,575,000 1,980,000 Investment in Seed Inc. 2,680,000 Long-Tem Investments & Other Assets 865,000 385,000 Total Assets $14,045,000 $4,875,000 Liabilities & Stockholders' Equity Accounts Payable & Other Current Liabilities $ 2,465,000 $1,145,000 Long-Tem Debt 1,900,000 1,300,000 Common Stock, $25 Par Value 3,200,000 1,000,000 Additional Paid-In Capital 2,100,000 190,000 Retained Earnings 4,380,000 1,240,000 Total Liabilities & Stockholders' Equity $14,045,000 $4,875,000Additional Information:1. Pot uses the equity method of accounting for its investment in Seed.2. On December 31, 20X3, Seed’s assets and liabilities had fair values equal to the book balances with the exception of land, which had a fair value of $550,000. Seed had no land transactions in 20X4.3. On June 15, 20X4, Seed paid a cash dividend of $4 per share on its common stock.4. On December 10, 20X4, Pot paid a cash dividend totaling $256,000 on its common stock.5. On December 31, 20X3, immediately before the combination, the stockholders’ equity balance was: