P Corporation paid $420,000 for 70% of S Corporations $10 par common stock on December 31, 2013, when S Corporations stockholders equity was made up of $300,000 of Common Stock, $90,000 of Other Contributed Capital and $60,000 of Retained Earnings. Ss identifiable assets and liabilities reflected their fair values on December 31, 2013, except for Ss inventory which was undervalued by $60,000 and their land which was undervalued by $25,000. Balance sheets for P and S immediately after the business combination are presented in the partially completed work-paper below.

			Eliminations
	P	S	Debit	Credit	Noncontrolling Interest	Consolidated Balances
ASSETS Cash	$40,000	$30,000
Accounts receivable-net	30,000	45,000
Inventories	185,000	165,000
Land	45,000	120,000
Plant assets- net	480,000	240,000
Investment in S Corp.	420,000
Difference between implied and book value
Goodwill
Total Assets	$1,200,000	$600,000
EQUITIES Current liabilities	$170,000	$150,000
Capital stock	600,000	300,000
Additional paid-in capital	150,000	90,000
Retained earnings	280,000	60,000
Noncontrolling interest
Total Equities	$1,200,000	$600,000