Nacy Company acquires

Nacy Company acquires 80%  for $320,000 cash on January 1, 2014. Corpuz reported common stock of $145,000 and retained earnings of $125,000 on that date. Equipment (remaining life 10 years) was undervalued by $60,000 and buildings (remaining life 15 years) were undervalued by $30,000 and Land was un