Power Corporation acquired 100 percent ownership of Scrub Company on February 12, 20X9. At the date of acquisition, Scrub Company reported assets and liabilities with book values of $422,000 and $179,000, respectively, common stock outstanding of $90,000, and retained earnings of $153,000. The book values and fair values of Scrubs assets and liabilities were identical except for land, which had increased in value by $16,000, and inventories, which had decreased by $8,000.