On January 1, 2014, Packard Company acquired an 80% interest in the common stock of Stack Company for $350,000. Stack had the following Balance Sheet on the date of acquisition: Buildings (20 year life) are undervalued by $75,000. Equipment ( 5 year life) is undervalued by $60,000. Any remaining excess is considered to be goodwill. Stack issued $100,000 of 8%,10 year bonds for $96,719 on January 1,2011 . Annual interest is paid on December 31. Packard purchased the bonds on January 1, 2015, for $100,930. Both companies use the straight-line method to amortize the premium/discount on the bonds. Packard and Stack used the following bond amortization schedules: On January 1, 2016, Stack held merchandise acquire from Packard for $20,000. During 2016, Packard sold $60,000 worth of merchandise to Stack. Stack held $25,000 of this merchandise at December 31,2016. Stack owed Packard $12,000 on December 31,2016 as a result of these intercompany sales. Packard has a gross profit rate of 30%. Packard and Stack had the following trial balances on December 31,2016 : On January 1, 2016, Stack held merchandise acquire from Packard for $20,000. During 2016, Packard sold $60,000 worth of merchandise to Stack. Stack held $25,000 of this merchandise at December 31, 2016. Stack owed Packard $12,000 on December 31,2016 as a result of these intercompany sales. Packard has a gross profit rate of 30%. Packard and Stack had the following trial balances on December 31,2016: On January 1, 2014, Packard Company acquired an 80% interest in the common stock of Stack Company for $350,000. Stack had the following Balance Sheet on the date of acquisition: Buildings (20 year life) are undervalued by $75,000. Equipment ( 5 year life) is undervalued by $60,000. Any remaining excess is considered to be goodwill. Stack issued $100,000 of 8%,10 year bonds for $96,719 on January 1,2011 . Annual interest is paid on December 31. Packard purchased the bonds on January 1, 2015, for $100,930. Both companies use the straight-line method to amortize the premium/discount on the bonds. Packard and Stack used the following bond amortization schedules: On January 1, 2016, Stack held merchandise acquire from Packard for $20,000. During 2016, Packard sold $60,000 worth of merchandise to Stack. Stack held $25,000 of this merchandise at December 31,2016. Stack owed Packard $12,000 on December 31,2016 as a result of these intercompany sales. Packard has a gross profit rate of 30%. Packard and Stack had the following trial balances on December 31,2016 : On January 1, 2016, Stack held merchandise acquire from Packard for $20,000. During 2016, Packard sold $60,000 worth of merchandise to Stack. Stack held $25,000 of this merchandise at December 31, 2016. Stack owed Packard $12,000 on December 31,2016 as a result of these intercompany sales. Packard has a gross profit rate of 30%. Packard and Stack had the following trial balances on December 31,2016