OnJanuary 1, 2011. Paisley Incorporated paid $300.000 for 60% of Smarnia Company's outstanding capital stock. Smarnia reported common stock onthat date of $250.000 and retained earnings of S100,000. Plant assets, which had a five-year remaininglife, were undervalued in Smarnia's financial records by $10.000. Smarnia alsohad a patent that was not on the books, but had a market value of $60,000. Thepatent has a remaining useful life of 10 years. Any remaining fair value/bookvalue differential is allocated to goodwill. Smarnia's net income and dividendspaid the first three years that Paisley owned them are shown below. Net Dividends Income Paid 2011 80.000 30.000 2012 90.000 10,000 2013 60,000 20.000 They Use Acquisition Methods & Implied Goodwill & Equity Mehtod For Investment Account Base on this case please answer the following Questions Loice.com/Pages/ResponsePage.aspx?id=Ks62XIUVNEFKmoyedbSTWw_wRbhrj2GimNKOVURFHOUSHQTHWMUKRUORJERTUS. 5. Calculate The Ending Balance In The Investment in Smarnia Account By the end of year 2011 (2 points) 0 6. Calculate The Ending Balance In The Investment in Smarnia Account By the end of year 2012 ch (2 Points) 0 1 7. In regarding to the investment Account Calculate thier Equity Increase for 3 years periods (2 points) 0 8 Calculate the rate of return for 2nd year investment (2 Points) BSF Smoke 490 9:56 AM 9/1/2022 O 0 9. Calculate the Excessof fair value over book value relted to this case. (3 Points) 90000 ho 10. Calculate the implied Goodwill Related to this case (3 Points) 0 Next Page 1 of 2 OnJanuary 1, 2011. Paisley Incorporated paid $300.000 for 60% of Smarnia Company's outstanding capital stock. Smarnia reported common stock onthat date of $250.000 and retained earnings of S100,000. Plant assets, which had a five-year remaininglife, were undervalued in Smarnia's financial records by $10.000. Smarnia alsohad a patent that was not on the books, but had a market value of $60,000. Thepatent has a remaining useful life of 10 years. Any remaining fair value/bookvalue differential is allocated to goodwill. Smarnia's net income and dividendspaid the first three years that Paisley owned them are shown below. Net Dividends Income Paid 2011 80.000 30.000 2012 90.000 10,000 2013 60,000 20.000 They Use Acquisition Methods & Implied Goodwill & Equity Mehtod For Investment Account Base on this case please answer the following Questions Loice.com/Pages/ResponsePage.aspx?id=Ks62XIUVNEFKmoyedbSTWw_wRbhrj2GimNKOVURFHOUSHQTHWMUKRUORJERTUS. 5. Calculate The Ending Balance In The Investment in Smarnia Account By the end of year 2011 (2 points) 0 6. Calculate The Ending Balance In The Investment in Smarnia Account By the end of year 2012 ch (2 Points) 0 1 7. In regarding to the investment Account Calculate thier Equity Increase for 3 years periods (2 points) 0 8 Calculate the rate of return for 2nd year investment (2 Points) BSF Smoke 490 9:56 AM 9/1/2022 O 0 9. Calculate the Excessof fair value over book value relted to this case. (3 Points) 90000 ho 10. Calculate the implied Goodwill Related to this case (3 Points) 0 Next Page 1 of 2
