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On January 1 , 2 0 2 3 . Ridge Road Company acquired 2 5 percent of the voting shares of Sauk Trall, Incorporated, for
On January Ridge Road Company acquired percent of the voting shares of Sauk Trall, Incorporated, for $ in cash.
Both companies provide commercial Internet support services but serve markets in different industries. Ridge Road made the
Investment to galn access to Sauk Trall's board of directors and thus facilitate future cooperative agreements between the two firms.
Ridge Road quickly obtained several seats on Sauk Trall's board, which gave it the ability to signtficantly influence Sauk Trall's
operating and investing activitus.
The January carrying amounts and corresponding fair values for Sauk Trall's assets and llabilitles follow.
Also, as of January Sauk Trall's computing equipment had a sevenyear remaining estimated useful life. The patented
technology was estimated to have a fiveyear remaining useful life. The trademark's useful life was considered indefinite. Ridge Road
attributed to goodwill any unidentified excess cost.
During the next two years. Sauk Trall reported the following net Income and dividends:
Required:
a How much of Ridge Road's $ payment for Sauk Trall is attributable to goodwill?
b What amount should Ridge Road report for its equity in Sauk Trall's earnings on its income statements for and
c What amount should Ridge Road report for its Investment In Sauk Trall on Its balance sheets at the end of and
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Req B and C
b What amount should Ridge Road report for its equity in Sauk Trail's earnings on its income statements for and
c What amount should Ridge Road report for its investment in Sauk Trail on its balance sheets at the end of and
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