Arlington inc. purchases all of the common stock of frisco company for $450,000$ cash. At the acquisition date, Frisco's stockholders equity consisted of common stock, $$300,000$ and retained earnings $20,000.$ It was determined that the investee's balance sheet included land undervalue by $30,000$ and equipment undervalue by $5,000.$ Arlington estimates a $10-$

year life for any goodwill.