The stockholders’ equities of Huanh Corporation and its 90 percent-owned subsidiary, Ngon Corporation, on December 31, 2016, are as follows (in thousands):

On January 1, 2017, Ngon issued previously unissued common stock of 100,000 shares directly to Huanh for $24 per share. The book value of Ngon’s net assets book is equal to fair value at the transaction date, except for land undervalued by $10,000.
 

Common stock, $10 par Additional paid-in capital Retained earnings Total stockholders' equity Huanh $10,000 500 600 $11,100 Ngon $2,000 150 250 $2,400