On January 3, 2018, Matteson Corporation acquired 40 percent of the outstanding common stock of OToole Company for $1,379,000. This acquisition gave Matteson the ability to exercise significant influence over the investee. The book value of the acquired shares was $863,000. Any excess cost over the underlying book value was assigned to a copyright that was undervalued on its balance sheet. This copyright has a remaining useful life of 10 years. For the year ended December 31, 2018, OToole reported net income of $353,000 and declared cash dividends of $35,000.The fair value of the O'Toole Company stock on December 31, 2018 was $1,410,000.

Requirements:

1.

How much of Matteson's consideration for O'Toole is attributable to revaluation increments and decrements and goodwill or gain on bargain purchase? (Enter negative numbers preceded by a minus sign.) 2. Prepare all of the journal entries for Austin regarding their investment in McKenzie Corporation stock using the equity method. 3. At December 31, 2015, what should Matteson report as its investment in OToole under the equity method? 4. Prepare all of the journal entries for Austin regarding their investment in McKenzie Corporation stock using the fair-value option. 5. At December 31, 2015, what should Matteson report as its investment in OToole under the fair value option? 6. How much of Matteson's consideration for O'Toole is attributable to revaluation increments and decrements and goodwill or gain on bargain purchase?