TB MC Qu. 03-15 On January 1, 2023, Barber... On January 1, 2023, Barber Corporation paid $1,160,000 to acquire Thompson Company. Thompson maintained separate incorporation. Barber used the equity method to account for the investment. The following information is available for Thompsons assets, liabilities, and stockholders' equity accounts on January 1, 2023:

Book Value Fair Value Current assets $ 130,000 $ 130,000 Land 75,000 193,000 Building (twenty-year life) 250,000 276,000 Equipment (ten-year life) 540,000 518,000 Current liabilities 26,000 26,000 Long-term liabilities 124,000 124,000 Common stock 233,000 Additional paid-in capital 389,000 Retained earnings 223,000

Thompson earned net income for 2023 of $134,000 and paid dividends of $51,000 during the year.

The 2023 total excess amortization of fair-value allocations is calculated to be

Multiple Choice

$3,500.

($1,300).

($2,100).

($900).

($2,200).