5. (20 pts) Flounder purchased 100% of Sole for $325,000 on Jan 1, 2020. On that date,
Equipment was considered undervalued by $60,000 and had a five year life, and
Other Intangibles were overvalued by $10,000 and had a four year life.
Book Value of Sole on that date was $150,000. Goodwill accounts for the rest of the excess.
Below are the income and dividends for 2020 for Sole as reported by Sole:
					2020
Income					$ 50,000
Dividends					$ 10,000
a. Prepare a schedule of distribution of excess of cost/fair value at Jan 1, 2020 and any amortization of assets:
b. Using the equity method, record the entries on the books of Flounder below to reflect activity
with Sole for 2020, including the original purchase.
					Dr.	Cr.