6 points Save Answer On June 30, 2016 the Suslava Company purchased 100% of the outstanding stock of Desai Inc. Just prior to the acquisition there is $1,325,000 of goodwill on the books of Suslava and $625,000 of goodwill on the books of Desai. In determining the fair value of the acquisition, the accountants for Suslava allocated $550,000 of the purchase price to goodwill. The consolidated goodwill after the acquisition should total A. $1,800,000 B. $550,000 C. $1,175,000 D. $2,500,000 E. $1,875,000 QUESTION 6 20 points Save Answer USE THE FOLLOWING INFORMATION FOR QUESTIONS 6-9 Dodge Inc. acquired 15% (15,000 shares) of Gates Corp. on January 1, 2017 for $105,000 when the book value of Gates was $600,000 and the fair market value was $700,000. During 2017, Gates reported net income of $150,000 and paid dividends of $60,000. The fair market value of Gates stock rose to $900,000 as of December 31, 2017. Dodge used the fair value method to record its investment in Gates in 2017. On January 1, 2018, Dodge purchased an additional 25% (25,000 shares) of Gates for $200,000 which resulted in Dodge having significant influence over Gates. Any excess cost over book value was attributed to goodwill with an indefinite life. Dodge decided to change to the equity method to account for its investment in Gates in 2018. During 2018, Gates reported net income of $200,000 and paid a dividend of $60,000 on November 1,2018. The income is assumed to have been earned evenly throughout the year. On September 30, 2018 Dodge sold 10,000 shares of Gates for $100,000. Based on those facts, calculate: The income reported by Dodge for 2017 with regard to the Gates investment. ***Use Table Function *** Arial 3 (12pt) T Click Save and Submit to save and submit. Click Save All Answers to save all answers. Save and Submit Save All Answers Close Window