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On January 2, 2024, Miller Properties paid $32 million for 1 million shares of Marlon Company's 6 million outstanding common shares. Miller's CEO became a
On January 2, 2024, Miller Properties paid $32 million for 1 million shares of Marlon Company's 6 million outstanding common shares. Miller's CEO became a member of Marlon's board of directors during the first quarter of 2024. The carrying amount of Marlon's net assets was $137 million. Miller estimated the fair value of those net assets to be the same except for a patent valued at $24 million above cost. The remaining amortization period for the patent is 10 years. Marlon reported earnings of $66 million and paid dividends of $9 million during 2024. On December 31, 2024, Marlon's common stock was trading on the NYSE at $31.50 per share. Required: 2. Assume Miller accounts for its investment in Marlon using the equity method. Ignoring income taxes, determine the amounts related to the investment to be reported in its 2024. Note: Do not round intermediate calculations. Enter all amounts as positive values. Enter your answers in millions rounded to 1 decimal place, (i.e., 5,500,000 should be entered as 5.5)
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