E4-8 Differential Assigned to Land and Equipment Rod Corporation purchased 100 percent ownership of Stafford Corporation on January 1, 20X4, for $65,000, which was $10,000 above the underlying book value. Half the additional amount was attributable to an increase in the value of land held by Stafford, and half was due to an increase in the value of equipment. The equipment had a remaining economic life of five years on January 1, 20X4. During 20X4, Stafford reported net income of $12,000 and paid dividends of $4,500