13) After allocating cost in excess of book value, which asset or liability would not be amortized over a useful life? A) Bonds payable. B) Goodwill. C) Property, plant, & equipment. D) Patents E) Cost of goods sold. 14) On January 1, 2018, Jordan Inc. acquired 30% of Nico Corp. Jordan used the equity method to account for the investment. On January 1, 2019, Jordan sold two-thirds of its investment in Nico. It no longer had the ability to exercise significant influence over the operations of Nico. How should Jordan account for this change? A) Jordan should continue to use the equity method to maintain consistency in its financial statements B) Jordan has the option of using either the equity method or the fair-value method for 2018 and C) Jordan should restate the prior years' financial statements and change the balance in the D) Jordan should use the fair-value method for 2019 and future years, but should not make a E) Jordan should report the effect of the change from the equity to the fair-value method as a future years. investment account as if the fair-value method had been used since 2018. retrospective adjustment to the investment account. retrospective change in accounting principle 15) On January 1 , 2016, Dermot Company purchased i 5% of the voting common stock of Home Corp. On January 1, 2018, Dermot purchased 28% of Home's voting common stock. If Dermot achieves significant influence with this new investment, how must Dermot account for the change to the equity method? A) It should prepare consolidated financial statements for 2018 B) It must restate the financial statements for 2017 and 2016 as if the equity method had been used for those two years. C) It should record a prior period adjustment at the beginning of 2018 but should not restate the financial statements for 2017 and 2016. D) It must restate the financial statements for 2017 as if the equity method had been used then. E) It must use the equity method for 2018 but should make no changes in its financial statements for 2017 and 2016