nu begih your work! All work must be your own, written in your own words. Question 1 Parrott and the fair value of its net assets was $1,200,000. On December 31, what amount of equity method goodwill results from this acquisition? Parrott Company will use the equity method to record the investment in Silver Company. As of December 31st (fiscal year end for both companies) Silver re Company purchased 40% o Silver Company's outstanding co n on stock on lanu 1 for a henthe book value of the enti 0 0 S her Co pa y as Simion $100,000 net income and, on December 31st, paid out total cash dividends to its common stock holders of $20,000 1. What amount should be recorded by Parrott as Goodyil 2. Record the JE for the receipt of cash dividends on December 31. I on the date of purchase? Present the entire journal entry to record the sale. Parrott paid cash. 3. What is the value of the investment account in Silver Company for Parrott Company as of December 31 for your calculation, T Account Analysis, or other presentation (i.e. a column of values, labelled 23 25 Big, Inc., acquired 30% of Little Co.'s voting stock for $400,000 on January 2 Year 1, and did not elect the fair value option. The price os equaled the carrying amount and the fair value of the interest purchased in Little's net assets, Big's interest in Little gave Big the 27 ability to exercise significant influence over Little's operating and financial policies. During Year 1, uittle earned $100,000 and paid dividends of $60,000. 28 Luttle reported earnings of $100,000 for the & months ended June 30, Year 2, and $200,000 for the year ended December 31, Year 2. On July 1, Year 2 29 Big sold half of its stock in Little for $300,000 cash. Little paid dividends of $60,000 on October 1, Year 2 30 1. Before income taxes, what amount should Big include in its Year 1 income statement as a result of the investmenti? 31 2. In Big's December 31. Year t, balance sheet, what should be the carrying amount of this investment? 2 3. In its Year 2 income statement, what amount should Big report as gain from the sale of half of its investment? Sheetl Ready