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ABC Inc. purchased 25,000 voting shares out of 123 Inc.'s 60,000 outstanding voting shares for $350,000 on January 1, 2018. On the date of acquisition,

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ABC Inc. purchased 25,000 voting shares out of 123 Inc.'s 60,000 outstanding voting shares for $350,000 on January 1, 2018. On the date of acquisition, 123's common shares and retained earnings were valued at $110,000 and $160,000, respectively. 123's book values approximated its fair values on the acquisition date with the exception of a patent and a trademark, neither of which had been previously recorded. The fair values of the patent and trademark on the date of acquisition were $40,000 and $10,000 respectively, On January 2, 2018, ABC sold 12,000 shares of 123 on the open market for $98,000. ABC Inc. uses the equity method to account for its investment in 123 Inc. Required: answer the following questions related to the above. 1. What is the amount of goodwill arising from the business combination? 2. What is ABC's percentage ownership in 123 at acquisition? 3. What percentage of the investment in 123 was sold by ABC? 4. What is ABC's ownership interest in 123 after the sale? 5. What is the percentage change in ownership? 6. What is the amount of gain or loss on the sale of the 14,000 shares

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