Pullman, Inc. acquired a controlling interest in Sierra Company on 1/1/20x1.At that time, the book value of Sierra Company's net assets was $16,970,000, including the following:

Book Value Fair Value' Remaining Buildings $2,700,000 $3,400,000 7 years Equipment 3,700,000 3,300,000 5 years Land 1,700,000 2,550,000 indefinite