Problem 3: Plenty Company acquired all of the stock of Some Company on January 1, 2022...

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Problem 3: Plenty Company acquired all of the stock of Some Company on January 1, 2022 for $1,100,000 cash. There were no combination or stock issuance costs. Fair market value differed from book value for two items: item book value fair value Land $280,000 $440,000 Buildings $320,000 $480,000 (20 year life) In 2022, Some Company reported income of and paid dividends of $30,000 $10,500 a. Calculate the annual amortization of any difference between fair market value and Some's book values b. Then, indicate how much investment income Plenty Company would recognize in 2022 under each of the following methods: Initial Value Method Partial Equity Method Equity Method Problem 3: Plenty Company acquired all of the stock of Some Company on January 1, 2022 for $1,100,000 cash. There were no combination or stock issuance costs. Fair market value differed from book value for two items: item book value fair value Land $280,000 $440,000 Buildings $320,000 $480,000 (20 year life) In 2022, Some Company reported income of and paid dividends of $30,000 $10,500 a. Calculate the annual amortization of any difference between fair market value and Some's book values b. Then, indicate how much investment income Plenty Company would recognize in 2022 under each of the following methods: Initial Value Method Partial Equity Method Equity Method