6. On January 2, 2020, Campbell, Inc. purchased a 20% interest in Renner Corp. for $2,000,000 cash. Du 2020, Renner's net income was $2,500,000 and it paid dividends of $750,000. What Equity Investment ba should Campbell report at December 31, 2020?

a. $2,500,000 b. $500,000

c. $2,350,000

d. $2,150,000

7. Spring Creek, Inc. purchased a 18% interest in Floyd Corporation on January 2, 2020. The purchas was $200,000. Spring Creek's officers constitute a majority of Floyd Corporation's board of director investee reported net income of $300,000 and paid dividends of $50,000 in 2020. On the December 31 balance sheet, what amount should Spring Creek, Inc. report as Equity Investment in Floyd Corporat

a. $245,000 b. $254,000

c. $263,000 d. $300,000

8. Midpark Co. purchased a 30% interest in Cycling Pros, Inc. on December 31, 2020 for $1,000,000. date, Cycling Pros' net assets had a book value of $2,000,000 and fair value of $3,000,000. What an goodwill resulted from this acquisition?

a. $-0-

b. $100,000

c. $400,000

d. $1,000,000

9. Johnson Corporation issues 50,000 shares of its common stock for all of the outstanding shares of S Inc. Johnson's shares have a par value of $4 and a market value of $19 per share. What is the in

consolidated additional paid-in capital resulting from the combination?

a. $750,000

b. $934,000

c. $1,634,000

. $-0-

0. On December 31, 2020, Park Inc. paid $500,000 for all of the common stock of Smith Corp. Or mith had assets and liabilities with book values of $400,000 and $100,000; and fair values of $4 25,000, respectively. What amount of goodwill will be reported on the December 31, 2020 balan

$50,000

$100,000

$200,000 $175,000

Johnson Corporation issues 50,000 shares of its common stock for all of the outstanding shares . Johnson's shares have a par value of $4 and a market value of $19 per share. If Smithson's ne ok values and fair values of $440,000 and $560,000, respectively, what is the resulting amoun ognized on the post-acquisition balance sheet?

510,000 $120,000

6390,000