Fizer Pharmaceutical paid $68 million on January 2, 2016 for 4 million shares of Carne Cosmetics common stock. The investment represents a 25% interest in the net assets of Carne and gave Fizer the ability to exercise significant influence over Carne's operations. Fizer received dividends of $1 per share on December 21, 2016 and Carne reported net income of $40 million for the year ended Decmeber 31, 2016. The fair value of Carne's common stock at December 31, 2016 was $18.50 per share.

- The book value of Carne's net assets was $192 million.

- The fair value of Carne's depreciable assets exceeded their book value by $32 million. These assets had an average remaining useful life of 8 years.

- The remainder of the excess of the cost of the investment over the book value of the net assets purchased was attributable to goodwill.

Investee Net Assets Ownerhsip Interest Net Assets purchased Difference Attributable to:

Purchase Price of: $68M

Fair value Carne's Assets ________________ X __________________ % = _____________ $ ________

Book value Carne's Assets ________________ X __________________ % = _____________ $ ________

Years Adjustment

Depreciation adjustment $ ______________ / __________________ = ____________