On January 1, 2013, Pallor Inc. purchased 40% of the outstanding stock of Saska Company for $300,000. At that time, Saska's stockholders' equity consisted of $270,000 common stock and $330,000 of retained earnings. Saska Corporation reported net income of $360,000 for 2013. The allocation of the $60,000 excess of cost over book value acquired is shown below, along with information relating to the useful lives of the items: Overvalued receivables (collected in 2013) Undervalued inventories (sold in 2013) Undervalued building (4 years' useful life remaining at January 1, 2013) Undervalued land $(5,000) 16,000 24,000 8,000 Unrecorded patent (6 years' economic life remaining at January 1, 2013) Undervalued accounts payable (paid in 2013) Total of excess allocated to identifable assets and liabilities 18,000 (4,000