On 1/1/22 Big Co acquired 100% of Little Co voting stock for $500,000. On that date, Little's book value was $350,000. Little Co had the following misvalued/unreported assets and liabilities:

1. Land, undervalued by $10,000

2. Inventory, FIFO basis, overvalued by $5,000

3. Equipment, 5 year life, undervalued by $60,000

4. Bonds payable, 10 year life, undervalued by $20,000

Assume that Little reports earnings of $60,000 and pays dividends of $10,000 in 2022.