On January 1, 2017, Boss Co. pays $96,000 to acquire 30% of the voting common stock of People Inc. Boss uses the equity method to account for its investment. At the time of the investment, People Inc. had net assets with a book value of $240,000 and with one undervalued net asset building which is undervalued in book by $30,000 (remaining useful life 15 years on 1/1/17). During 2017, People Inc. reported a net income of $100,000 and paid dividends of $60,000. Any excess cost over book value is attributable to goodwill with an indefinite life.

1) How much is the amount of goodwill from Bosss investment in People Inc. (1/1/2017)?

2) What is the annual amortization of FV>BV (i.e., undervalued building)?

3) What is the balance in Bosss investment account on December 31, 2017? Show your calculation (Show journal entries).