P Corporation acquired 80% of H Co. on January 1, 2015 for $420,000 cash when Hs stockholders equity consisted of $300,000 of Common Stock and $100,000 of Retained Earnings. The difference between the price paid by P and the underlying equity acquired in H was due to a $25,000 undervaluation of Hs inventory, a $50,000 undervaluation of Hs Property, Plant and Equipment (PPE) and goodwill. The separate company statements for P and H appear in the first two columns of the partially completed consolidation working papers. The undervalued inventory was sold by H during 2015, and the undervalued PPE had a remaining useful life of 5 years. H owed P. $8,000 on account payable at December 31, 2015.