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On July 1, 2019, Killearn Company acquired 148,000 of the outstanding shares of Shaun Company for $21 per share. This acquisition gave Killearn a 40

On July 1, 2019, Killearn Company acquired 148,000 of the outstanding shares of Shaun Company for $21 per share. This acquisition gave Killearn a 40 percent ownership of Shaun and allowed Killearn to significantly influence the investees decisions. As of July 1, 2019, the investee had assets with a book value of $8 million and liabilities of $1,207,750. At the time, Shaun held equipment appraised at $166,250 more than book value; it was considered to have a seven-year remaining life with no salvage value. Shaun also held a copyright with a five-year remaining life on its books that was undervalued by $660,000. Any remaining excess cost was attributable to goodwill. Depreciation and amortization are computed using

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