On January 1 , 2014 , Pearson Company acquired all of Sundisk Company's voting Stock for $ 20,000, 000 in cash . Some of Sundisk's assets and liabilities at the date of purchase had fair values that were different from reported values , as follows : Book Value* Fair Value* Land , buildings and Equipment , net ( 20 years , straight - line ) $ 15, 000, 000 $ 5, 000, 000 Identifiable intangibles 15 years , straight- line ) 4.000, 000 Sundisk's total stockholders" Equity at January 1 , 2014 was $8, 000, 000. It is now December 31 , 2016 13 years later ) . There is no goodwill impairment as of the beginning of 2016 , but goodwill impairment for 2016 15 $ 1 ,000, 000 . Pearson uses the complete Equity method to account for its investment . DECEmber 31 , 2016 trial balances for Pearson and Sundisk follows : Pearson Sundisk ( in thousands* Or ([r ) Or ( Cr) Current assets $ 5, 000 $ 2, 500 Plant assets , net 28, 850 28, 100 Intangibles Investment in Sundisk 29, 600 Goodwill Liabilities 22,000 ) 11 , 000 ) Capital stock (15 , 000 ) 12, 0.00 ) Retained earnings , beginning (24, 000 ) (15, 800 ) Accumulated other comprehensive income , beginning* ( 1 , 000 ) (200 ) Sales REVENUE 25, 000 ) 14 , 000 ) Equity in net income of Sundisk* 200) Equity in OCT of Sundisk (100 ) Cost of goods sold 20,000 9,000