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On April 1, 2021, BigBen Company acquired 35% of the shares of LittleTick, Inc. BigBen paid $105,000 for the Investment, which is $57,000 more than
On April 1, 2021, BigBen Company acquired 35% of the shares of LittleTick, Inc. BigBen paid $105,000 for the Investment, which is $57,000 more than 35% of the book value of LittleTick's Identifiable net assets. Big Ben attributed $11,900 of the $57,000 difference to Inventory that will be sold in the remainder of 2021, and the rest to goodwill. LittleTick recognized a total of $17,000 of net income for 2021, and paid total dividends for the year of $10,500; these dividends were issued quarterly. BigBen's Investment in LittleTick will affect BigBen's 2021 net income by (Round your answer to nearest whole dollar amount): Multiple Choice A loss of $7,438. Earnings of $2.901. Earnings of $4.463, Earnings of $1,562
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