On January 1, 2024, Morey, Incorporated, exchanged $176,425 for 25 percent of Amsterdam Corporation. Morey appropriately applied the equity method to this investment. At January 1, the book values of Amsterdams assets and liabilities approximated their fair values.
Morey, Incorporated, exchanged	176,425
percent of Amsterdam Corporation	25%
On June 30, 2024, Morey paid $626,500 for an additional 70 percent of Amsterdam, thus increasing its overall ownership to 95 percent. The price paid for the 70 percent acquisition was proportionate to Amsterdams total fair value. At June 30, the carrying amounts of Amsterdams assets and liabilities approximated their fair values. Any remaining excess fair value was attributed to goodwill.
Morey paid	626,500
Additional percent of Amsterdam	70%
Noncontrolling interest	5%
Percentage of year	50%
Amsterdam reports the following amounts at December 31, 2024 (credit balances shown in parentheses):
Revenues	(313,000)
Expenses	218,000
Retained earnings, January 1	(275,100)
Dividends declared, October 1	20,000
Common stock	(500,000)
Amsterdams revenue and expenses were distributed evenly throughout the year, and no changes in Amsterdams stock have occurred.
Required:
Note: Use cells A2 to B20 from the given information to complete this question. Enter all amounts as positive values.
a. Using the acquisition method, calculate the acquisition-date fair value of Amsterdam to be included in Morey's June 30 consolidated financial statements.
Price paid for 70% of Amsterdam
Percentage Purchased
Total fair value of Amsterdam
b. Using the acquisition method, calculate the revaluation gain (or loss) reported by Morey for its 25 percent investment in Amsterdam on June 30.
January 1 Equity Investment in Amsterdam
25% Noncontrolling interest for 1st 6 months
Revenue
Expenses
Noncontrolling interest
Percentage of year
Ownership %
Share of Noncontrolling interest for first six months of year
Investment in Book value at June 30
Fair value of Investment at 6/30
Total Fair value
Ownership %
Gain on revaluation
c. Using the acquisition method, calculate the amount of goodwill recognized by Morey on its December 31 consolidated balance sheet (assume no impairments have been recognized).
Goodwill
Fair value at 6/30
Book value at 6/30
Common stock
Retained Earnings January 1
Noncontrolling interest (6 months)
Total
Goodwill
d. Using the acquisition method, calculate the noncontrolling interest amount reported by Morey on its June 30 and December 31 consolidated balance sheet.
Note: Formulas for any items to be subtracted must return negative values.
5% of Fair value at 6/30
5% of subsidiary Noncontrolling interest 6/30 - 12/31
5% subsidiary dividends
Noncontrolling interest 12/31