| c a Search Comprehensive Illustration Problem (Estimated Time: 60 to 75 Minutes) On January 1, 2009, Father Company acquired an 80 percent interest in Sun Company for $425,000. The acquisition-date fair value of the 20 percent noncontrolling interest's ownership shares was $102,500. Also as of that date, Sun reported total stockholders' equity of $400,000: $100,000 in common stock and $300,000 in retained earnings. In setting the acquisition price, Father appraised four accounts at values different from the balances reported within Sun's financial records. Buildings (8-year life) . Land. . . Equipment (5-year life). Royalty agreement (20-year life). . . Undervalued by $20,000 Undervalued by $50,000 Undervalued by $12,500 Not recorded, valued at $30,000 As of December 31, 2013, the trial balances of these two companies are as follows: Father Company Sun Company Debits S 605,000 425,000 280,000 Current assets . . Investment in Sun Company 300 000