played 34 out of 50 points Question 1 Lillian Company acquired 25 percent of the outstanding voting stock of Coco Company on January 1, 2021. for $272,000 in cash and had the ability to significantly influence the investee's operations and decision making. The book value of Coco's net assets on that date was $600,000, although one of the company's buildings, with a $200,000 carrying amount, was actually worth S320,000. This building had a 10-year remaining life. Coco owned a royalty agreement with a 5-year remaining life that was undervalued by $80,000. Lillian attributed to goodwill any unidentified excess cost Coco reported net income of S120,000 in 2021 and S160.000 in 2022. Dividends of $20,000 and $30.000 are declared and paid in 2021 and 2022, respectively Lillian sold inventory with an original cost of $25.000 to Coco during 2021 at a price of $40.000. Coco still held S16,000 (transfer price) of this amount in inventory as of December 31, 2021. These goods are to be sold to outside parties during 2022 During 2022. Lillian made additional inventory sales of $60,000 to Coco during the period. The original cost of the merchandise was $42,000, Coco did not resell 30 percent of these 2022 purchase from Lillian until 2023. Answer the following questions: (Do not add dollar sign, do not add comma to your amount, round the answer to the whole number) 1. How much of Lillian's $272.000 payment for Coco attributable to goodwill? taj 2. What amount should Lillian report for it Equity in Coco Earnings on its income statement for year 2022? [b] 3. What amount should Lillian report for its Investment in Coco on its balance sheet at the end of 2022 (c) Specified Answer for: a Specified Answer for b 13000 Specified Answer for: 329500 0 39 out of 50 points played 34 out of 50 points Question 1 Lillian Company acquired 25 percent of the outstanding voting stock of Coco Company on January 1, 2021. for $272,000 in cash and had the ability to significantly influence the investee's operations and decision making. The book value of Coco's net assets on that date was $600,000, although one of the company's buildings, with a $200,000 carrying amount, was actually worth S320,000. This building had a 10-year remaining life. Coco owned a royalty agreement with a 5-year remaining life that was undervalued by $80,000. Lillian attributed to goodwill any unidentified excess cost Coco reported net income of S120,000 in 2021 and S160.000 in 2022. Dividends of $20,000 and $30.000 are declared and paid in 2021 and 2022, respectively Lillian sold inventory with an original cost of $25.000 to Coco during 2021 at a price of $40.000. Coco still held S16,000 (transfer price) of this amount in inventory as of December 31, 2021. These goods are to be sold to outside parties during 2022 During 2022. Lillian made additional inventory sales of $60,000 to Coco during the period. The original cost of the merchandise was $42,000, Coco did not resell 30 percent of these 2022 purchase from Lillian until 2023. Answer the following questions: (Do not add dollar sign, do not add comma to your amount, round the answer to the whole number) 1. How much of Lillian's $272.000 payment for Coco attributable to goodwill? taj 2. What amount should Lillian report for it Equity in Coco Earnings on its income statement for year 2022? [b] 3. What amount should Lillian report for its Investment in Coco on its balance sheet at the end of 2022 (c) Specified Answer for: a Specified Answer for b 13000 Specified Answer for: 329500 0 39 out of 50 points
