On January 1, Year 4, Hidden Company acquired 25,000 ordinary shares of Jovano Company for $144,000 when the shareholders equity of Jovano was as follows:

Ordinary shares (100,000 no par value shares issued and outstanding)	$	200,000
Retained earnings		327,000
	$	527,000

In addition, Hidden purchased 20,000 shares in Jovano for $122,280 on January 1, Year 5, and 10,000 shares in Jovano for $63,360 on January 1, Year 6.

The following are the statements of retained earnings for Jovano from Year 4 to Year 6:

	Year 4			Year 5			Year 6
Retained earnings, beginning of year	$	327,000		$	360,000		$	394,000
Profit		53,000			55,000			59,000
Dividends		(20,000	)		(21,000	)		(22,000	)
Retained earnings, end of year	$	360,000		$	394,000		$	431,000

Additional Information

• Jovanos ordinary shares are publicly traded. The market value of the shares at the close on December 31 of one year was the same as the market value on January 1 of the next year.
• Any acquisition differential is allocated to customer lists with a useful life of three years on each of the three acquisition dates. Neither company has any customer lists recorded on their separate entity records.
• There were no unrealized profits from intercompany transactions since the date of acquisition.

Required:

(a) Under the Equity method

Record amortization of acquisition differential in the books of Hidden Company Year 4, 5 and 6.

Record remeasurement gain or loss under the equity method in the books of Hidden Company in Year 6.

please show your work.