3. 1/1/16 The Snow Company bought 30% of the Jones Corp for $450 million.

The fair value of Jone's assets was $900 million and the book value

was $800.The difference between the book and fair value is the result

of land (50% of the difference))and building(50%).The remaining life of the building

is 10 years.

Jones had net income of $150 milliion and paid out dividends of

$30 milliion during the year.

prepare all journal entries relating to Snow's purchase.

Calculate the value of the investment in Jones at year end.

Is there any goodwill? If so, how much?

Smith Co paid $1,088 million for 6.4 million shares ofDoe Corp.

Smith now owns 40% of Doe.

Doe paid $1 per share in dividends during the year and reported net income

of $40 million. The fair value of Doe's stock was $20 per share at year end.

The book value of Doe's net assets was $192.

The fair value of Doe's assets exceeded the book value by $32.The excess

of fair value over book value is due todepreciable assets with an 8 year

life.

Is there any goodwill?If so how much?

Please make all of Smith's journal entries regarding Doe.

Calculate the book value of the investment in Doe at year end.