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On 3 January 20X4, Windsor Company purchased 30% of the shares of Brampton for $578,000 cash. Windsor will use the equity method. On this
On 3 January 20X4, Windsor Company purchased 30% of the shares of Brampton for $578,000 cash. Windsor will use the equity method. On this date, Brampton has $1,970,000 of assets, $1,576,000 of liabilities, and $394,000 of equity. Book values reflect fair values except for $890,000 of equipment, which has a five-year life and a fair value of $1,112,500. In 20X4, Brampton pays $34,800 of total dividends and reports earnings of $116,000. Required: 1. Calculate goodwill on acquisition, and the annual extra depreciation on investee equipment at fair value. Goodwill Additional depreciation
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