George Corporation paid $240,000 for 45% of Washington Corporation's outstanding voting common stock on July 1, 2021. Washington's stockholders' equity on January 1, 2021 was $260,000 consisting of $160,000 capital stock and $100,000 retained earnings. During 2021, Washington reported net income of $70,000 and on October 1, 2021, Washington declared dividends of $32,000. Washington's assets and liabilities were stated at fair values on July 1, 2021 except for land that was undervalued by $40,000 and equipment with a five-year remaining useful life that was undervalued by $30,000.