On January 1, 2015, Penske Company acquires an 80% interest in Stock Company for $450,000. Stock has the following balance sheet on the date of acquisition: Buildings, which have a 20-year life, are...

On January 1, 2015, Penske Company acquires an 80% interest in Stock Company for $450,000. Stock has the following balance sheet on the date of acquisition:

Buildings, which have a 20-year life, are undervalued by $100,000. Equipment, which has a 5-year life, is undervalued by $50,000. Any remaining excess of cost over book value is attributable to goodwill.