ABC Corporation acquired 90% of Le Mall Corporation on January 1, 2019 for $72,000 cash when Le Mall's stockholders' equity consisted of $30,000 of Capital Stock and $30,000 of Retained Earnings. The difference between the fair value of Le Mall's assets and liabilities and the book value was allocated to a plant asset with a remaining 10-year straight-line life that was OVERVALUED on the books by $5,000. The remainder was attributable to goodwill. The separate company statements as at 31/12/2019 for ABC and Le Mall appear bellow

Required:

Calculate the following:

a)Goodwill

b) The income from LeMall for 2019 that appears on the Income Statement of ABC

c) The balance of the Investment account in Le Mall on ABC books as of December 31 2019

SHOW YOUR CALCULATIONS WHICH REPRESENT 75% OF THE GRADE

ABC Le Mall income St. Sales SABC 60,000 Le Mall 22,000 Balance Sheet Cash 3510 26,5207.000 Income from Le mall Cost of Sales Depreciation EXO Other Eros Net Income (13,000)9 ) (2000) 13,000) 23,000) 16,100) 25.510 3.489 Accounts Rec Inventories Plant Assets Investment in LeMo Total Assets 22,000 10.000 20.000 14,000 97,000 80,000 72,810 239.339 11102 St. of Retained Eornings Bee Re Earn Add: NI Less: Dividends End Ret Ear. 25.000 30.000 25,510 3,400 15,000 3,000) 35,510 39,409 Lab & Equity Accounts Pay Capital Stock Retained Earn Total und & 594 32 820 50,600 170.000 30.000 35,510 30,400 2302339 11.09 Anwar ENGLISH (UNITED STATES) ABC Le Mall income St. Sales SABC 60,000 Le Mall 22,000 Balance Sheet Cash 3510 26,5207.000 Income from Le mall Cost of Sales Depreciation EXO Other Eros Net Income (13,000)9 ) (2000) 13,000) 23,000) 16,100) 25.510 3.489 Accounts Rec Inventories Plant Assets Investment in LeMo Total Assets 22,000 10.000 20.000 14,000 97,000 80,000 72,810 239.339 11102 St. of Retained Eornings Bee Re Earn Add: NI Less: Dividends End Ret Ear. 25.000 30.000 25,510 3,400 15,000 3,000) 35,510 39,409 Lab & Equity Accounts Pay Capital Stock Retained Earn Total und & 594 32 820 50,600 170.000 30.000 35,510 30,400 2302339 11.09 Anwar ENGLISH (UNITED STATES)