Following is the balance sheet for Cake at 1/1/2014.On 1/1/2014, Choco acquired80%of the outstanding common stock (80,000 shares out of 100,000 shares) of Cake for $18/shares.The market value for Cake's stock was $16/share. (control premium)

Book value Fair value FV-BV Current assets $800,000 $800,000 Land 200,000 300,000 Patented technology (20 years) 400,000 600,000 Equipment (5 years) 600,000 750,000 Total assets Liabilities $(1,000,000) $(1,000,000) Common stock (100,000 shares outstanding) (200,000) Additional paid-in capital (300,000) Retained earnings (500,000) Total liabilities and stockholders' equity