Allen Company acquired 100 percent of Bradford Company's voting stock on January 1, 2017,by issuing 10,000 shares of its $10 par value common stock (having a fair value of $14 per share). As of that date, Bradford had stockholders' equity totaling $105,000. Land shown on Bradford's accounting records was undervalued by $10,000. Equipment (with a five-year remaining life) was undervalued by $5,000. A secret formula developed by Bradford was appraised at $20,000 with an estimated life of 20 years. what is the subsidiary earnings in Allen company when Bradford Company's net income is 68000
