On January 1, 2015, Packard Corporation acquired 70% of the common stock of Stude Corporation for $400,000. On this date, Stude had the following balance sheet: Buildings, which have a 20-year life,...

On January 1, 2015, Packard Corporation acquired 70% of the common stock of Stude Corporation for $400,000. On this date, Stude had the following balance sheet:

Buildings, which have a 20-year life, were understated by $150,000. Equipment, which has a 5-year life, was understated by $60,000. The 3,000 NCI shares had a fair value of $50 each. Any remaining excess was considered to be goodwill. Packard used the simple equity method to account for its investment in Stude.

Packard and Stude had the following trial balances on December 31, 2016: