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Company P acquired 60% of the outstanding common stock of Company S by issuing common stock with a market value of $420,000 on January 1,2016
Company P acquired 60% of the outstanding common stock of Company S by issuing common stock with a market value of $420,000 on January 1,2016 . The balance sheet of Company S was as follows on the acquisition date: The market values were as follows: Inventory, $130,000; Land, $150,000; Building, $400,000. The inventory was sold during 2016, the building has a 10-year life, and any excess purchase price is attributed to goodwill. What adjustment is needed to consolidated net income to arrive at cash flow-operations for 2017 , under the indirect method, as a result of amortization of excesses from the purchase? $14,800 $15,000 $9,000 $1,000
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