On March 1, 202x, the XYZ Company acquired 40% of the voting stock of KLM Company for $6 million. The net worth of KLM book value is $10 million. The fair market value of the KLM assets and liabilities are equal except for a building with book value of $ 3 million has a fair value of $5 million

KLM reported net income of $2 million and made dividends distribution of 1 million during the year ending 12/31/202x. Assume xyz is using the equity method for the investment.

A. was there any good will in this transaction? How much?

B. Make the jounral entry to reflect the above transactions by xyz company during 2020

Assume XYZ uses straight line depreciation and 10 years economic life

Show the general ledger of "investment" account and ending balance by XYZ company on 12/31/20x