$75,000 E3-3 [Based on AICPA) General problems 1. Cobb Company's current receivables from affiliated companies at December 31, 2016, are (1) a the equity method), (2) a receivable of $260,000 from Vick Corporation for administrative and selling services Vic advance to Hill Corporation (Cobb owns 30 percent of the voting stock of Hill and accounts for the investment by is 100 percent owned by Cobb and is included in Cobb's consolidated financial statements), and (3) a receivable $200,000 from Ward Corporation for merchandise sales on credit (Ward is a 90 percent-owned, unconsolidated subsidiary of Cobb accounted for by the equity method). In the current assets section of its December 31, 2016 consolidated balance sheet, Cobb should report accounts receivable from investees in the amount of: a $180,000 b$255,000 c$275,000 d $535,000 Use the following information in answering questions 2 and 3. the 280 date, the fair values of Son's assets and liabilities equaled their carrying amounts of $2,640,000 and S640,000, respec tively. Pop's policy is to amortize intangibles other than goodwill over 10 years. During 2016, Son paid cash dividends of $40,000 Selected information from the separate balance sheets and income statements of Pop and Son as of December 31, 2016, and for the year then ended follows (in thousands): Pop Son Balance Sheet Accounts Investment in subsidiary $2,640 Retained earnings 2,480 $ 1,120 Total stockholders' equity 5,240 2.240 Income Statement Accounts $ 840 $ 400 Operating income Equity in earnings of Son 280 Net income 800 2. In Pop's 2016 consolidated income statement, what amount should be reported for amortization of goodwill? a $0 b$24,000 C$36,000 d $40,000 3. In Pop's December 31, 2016, consolidated balance sheet, what amount should be reported as total retained earnings? a $2,480,000 b $2,720,000 C$2,760,000 d $3,600,000