Question 3 (12 points) O Listen On January 1, 2019, Ran Inc. purchased 54,000 voting shares out of Kan inc's 90,000 outstanding voting shares for $240,000 On that date, Kan's common shares and retained earnings were valued at $60,000 and $90,000, respectively, Kan's book values approximated its fair values on the acquisition date with the exception of the company's equipment, which was estimated to have a fair value that was $50,000 in excess of its recorded book value. The equipment was esfimated to have a useful life of eight years. Both companies use straight line amortization exclusively o Kan's goodwill suffered an impairment loss of $5,000 during 2019 o On January 1, 2020, Ran purchased an additional 9,000 shares of Kan Inc. on the open market for $45,000. On this date, Kan's book values were equal to its fair values with the exception of the company's equipment, which is now thought to be undervalued by $60,000. Moreover, the equipment's estimated useful life was revised to 5 years on this date. o Kan's net income and dividends for 2019 and 2020 are as follows: Net Income Dividends 2019 $60,000 $9,000 2020 $80,000 $14,000 o Ran Inc. uses the equity method to account for its investment in Kan Inc Required: Record Ran's purchase of additional shares on Jan. 1,2020 in its internal books. Show your calculations for part marks . Paragraph 1 U Question 3 (12 points) O Listen On January 1, 2019, Ran Inc. purchased 54,000 voting shares out of Kan inc's 90,000 outstanding voting shares for $240,000 On that date, Kan's common shares and retained earnings were valued at $60,000 and $90,000, respectively, Kan's book values approximated its fair values on the acquisition date with the exception of the company's equipment, which was estimated to have a fair value that was $50,000 in excess of its recorded book value. The equipment was esfimated to have a useful life of eight years. Both companies use straight line amortization exclusively o Kan's goodwill suffered an impairment loss of $5,000 during 2019 o On January 1, 2020, Ran purchased an additional 9,000 shares of Kan Inc. on the open market for $45,000. On this date, Kan's book values were equal to its fair values with the exception of the company's equipment, which is now thought to be undervalued by $60,000. Moreover, the equipment's estimated useful life was revised to 5 years on this date. o Kan's net income and dividends for 2019 and 2020 are as follows: Net Income Dividends 2019 $60,000 $9,000 2020 $80,000 $14,000 o Ran Inc. uses the equity method to account for its investment in Kan Inc Required: Record Ran's purchase of additional shares on Jan. 1,2020 in its internal books. Show your calculations for part marks . Paragraph 1 U