Supplemental Problem $1-1$

Calculating Equity in Net Income

Plattco purchased $70\%$ of Siris, Inc. for $$1,200,000.$ Book values equaled fair values except Property Plant and Equipment had a fair value $$100,000$ greater than book value, and unreported technology of $$10,000.$ Property, Plant & Equipment has an estimated life of $10$ years, and the unrecorded technology a life of $5$ years. The calculation of goodwill at acquisition is:

$\backslash$table$[[$Price Paid,$$1,200,000$