Port Town Motors acquired 100% of the outstanding common stock of Schenectady Autos. In acquiring Schenectady, Port Town paid $500,000 in cash and issued 22,000 shares of its $1 par value common stock, which had a market value of $4 per share.

At the acquisition date, Schenectady Autos pre-acquisition trial balance was:

	Debit	Credit
Cash and short-term investments	70,000
Accounts receivable	50,000
Supplies	20,000
Machinery and equipment, net	240,000
Buildings, net	140,000
Land	90,000
Intangible assets, indefinite life	110,000
Accounts payable		60,000
Long-term liabilities		180,000
Common stock		300,000
Additional paid-in capital		60,000
Retained earnings, 1/1/20x1		120,000

In addition, the fair value and remaining useful lives of the acquired noncurrent assets at acquisition were:

	Fair value	Useful life (in years)
Buildings	$188,000	20
Machinery and Equipment	$216,000	8
Land	$102,000	-
Patent	$72,000	10

Schenectady Autos net income and dividends declared and paid were:

	Fye 20x1	Fye 20x2
Net income	$96,000	$132,000
Dividends declared and paid	$12,000	$36,000

Required

1. Prepare the journal entry to record Port Town Motors acquisition of Schenectady at 1/1/20x
2. Determine the amount of goodwill recorded at acquisition, if any.
3. For their investment in Schenectady Autos, prepare Port Town Motors journal entries to record income and dividends for fye 20x1 and fye 20x2.
4. Prepare a schedule showing the value of Port Town Motors Investment in Schenectady Autos as of fye 20x1 and fye 20x2?

Oh and showing work would be greatly appreciated. Thank You!