Cardinal Company acquires an 80% interest in Huron Company common stock for $420,000 cash on January 1, 2015. At that time, Huron Company has the following balance sheet:

Assets Liabilities and Equity

Current Assets	$60,000	Accounts Payable	$60,000
Land	$100,000	Common Stock ($5 par)	$50,000
Equipment	$350,000	Paid-in capital in Excess of Par	$100,000
Accumulated Depreciation	($150,000)	Retained Earnings	$150,000
Total Assets	$360,000	Total Liabilities and Equity	$360,000

Appraisals indicate that accounts are fairly stated except for the equipment, which has a fair value of $240,000 and a remaining life of five years. Any remaining excess is goodwill.

Huron Company experiences the following changes in retained earnings during 2015 and 2016:

Retained Earnings, January 1, 2015 $150,000

Net Income, 2015 $50,000

Dividends Paid in 2015 (10,000) 40,000

Balance, December 31, 2015 $190,000

Net Income, 2016 $45,000

Dividends paid in 2016 (10,000) $35,000

Balance, December 31, 2016 $225,000

Prepare a determination and distribution of excess schedule for the investment in Huron Company (a value analysis is not needed). Prepare journal entries that Cardinal Company would make on its books to record income earned and/or dividends received on its investment in Huron Company during 2015 and 2016 under the following methods: simple equity, sophisticated equity, and cost.

Determination and distribution of excess schedule	Company implied price	parent price at 80%	nci at 20%
Company paid	525000	420,000	105,000
common stock	50,000
paid in capital	100,000
retained earnings	150,000
total se	300,000
interest acquired	100%	80%	20%
bv	300,000	240,000	60,000
fv over bv	225,000	180,000	45,000
adjustments of identifiable accounts	adjustment	worksheet key	life	amortization per year
Equipment	40,000	d1	5	8000
goodwill	185,000	d2
total	225,000

Question: How did they solve the adjustments for goodwill equals to 185,000 and amortization equals to 40,000?

Because in my notes it states that adjustment is equal to fair value minus book value.

FV of Equipment = 240,00 and BV = 350,000.

240,000 - 350,000 does not equal to 40,000.

Also where is the 185,000 in GW coming from? When I did the value analysis schedule, it was not even close to 185,000.