home / study / questions and answers / business / accounting / puppy obtain 100% of swan's outstanding common ... Question Puppy obtain 100% of Swan's outstanding common stock on january 1, 2011, by issuing 1,000,000 shares of $15 par value common stock. Puppy's shares had a $75 per share fair value. Swan's book value is $10 million. Book and fair values are the same except for equipment with fair value $15 million higher than book value. Swan has unreported identifiable intangibles vauled at $2 million. assume that Puppy uses the equity method to account for its investment. Swan reports net income of $5 million and declares and pays cash dividends of $1 million to Puppy in 2011. Revalued equipment has a remaining life of 20 years. Identifiable intangibles have 4 years of remaining life. Straight-line depreciation and amortization is used. Goodwill is not impaired. Puppy prepares its internal reporting for the year ending December 31, 2011. Required: 1) Record the purchase of equity investment on 1/1/2011. 2) Allocate Puppys acquisition costs and determine the amount attributable to goodwill, if any. 3) What is Puppys Equity in Income balance in Swan for 2011? 4) Record Puppys equity in Swans net income in 2011. . 5) Record Puppys share of dividends received from Swan in 2011. Please help and show how you got the answer if possible.