Pat Corporation acquired 14,000 shares of Sci corporation for a price of $50 per share on Jan. 1, 2009. Sci Corp. had 20,000 shares outstanding as of Jan. 1 2009. At jan 1, 2009 sci's stockholders equity consisted of $250,000 in capital stock and $150,000 in retained earnings. Sci's Corp's equipment was undervalued by $70,000 at the date of Pat's acquisition. Sci's building was also undervalued by $100,000 at the date of Pat's acquisition. The remaining useful life of the equipment was 5 years and the building 20 years at the date of acquisition. All remaining assets and liabilities of Sci have a fair value equal to book value. At december 31, 2010, Sci has an account payable balance of $15,000 owed to Pat. Also on that date, Pat owes Sci $25,000 on a note payable.