On January 1, 2020, Archer, Incorporated, paid $100,000 for a 30% interest in Harley Corporation. This investee had assets with a book value of $555,000 and liabilities of $300,000. A patent held by Harley having a book value of $10,000 was actually worth $40,000 with a three-year remaining life. Any goodwill associated with this acquisition is considered to have an indefinite life. During 2020, Harley reported net income of $50,000 and paid dividends of $20,000 while in 2021 it reported net income of $75,000 and dividends of $30,000. Assume Archer has the ability to significantly influence the operations of Harley. The amount allocated to goodwill at January 1, 2020, is A The equity in income of Harley for 2020, is The equity in income of Harley for 2021, is The balance in the Investment in Harley account at December 31, 2020, is The balance in the Investment in Harley account at December 31, 2021, is A/ Previous Page Next Page Page 12 of 19