vestee's stockholders' equity throughout the life o equal 30% of investee's stockholders' equity at date of acquisition 2020, Rery 2, 2020, Campbell, Inc. purchased a 20% interest in Renner Corp. for $2,000,000 cash. D should Campbell income was $2,500,000 and it paid dividends of $750,000. What Equity Investment ba a. $2,500,000 b. $500,000 c. $2,350,000 d. $2,150,000 7. Spring Creek, Inc. purchased a 18% interest in Floyd Corporation on January 2,2020 . The purchas was $200,000. Spring Creek's officers constitute a majority of Floyd Corporation's board of director investee reported net income of $300,000 and paid dividends of $50,000 in 2020 . On the December 31 balance sheet, what amount should Spring Creek, Inc. report as Equity Investment in Floyd Corporat a. $245,000 b. $254,000 c. $263,000 d. $300,000 8. Midpark Co. purchased a 30% interest in Cycling Pros, Inc. on December 31,2020 for $1,000,000. date, Cycling Pros' net assets had a book value of $2,000,000 and fair value of $3,000,000. What an goodwill resulted from this acquisition? a. $0 b. $100,000 c. $400,000 d. $1,000,000 9. Johnson Corporation issues 50,000 shares of its common stock for all of the outstanding shares of Inc. Johnson's shares have a par value of $4 and a market value of $19 per share. What is the i consolidated additional paid-in capital resulting from the combination? a. $750,000 b. $934,000 . $1,634,000 1. $0 0. On December 31,2020 , Park Inc. paid $500,000 for all of the common stock of Smith Corp. O mith had assets and liabilities with book values of $400,000 and $100,000; and fair values of $4 125,000 , respectively. What amount of goodwill will be reported on the December 31,2020 balan $50,000 $100,000 $200,000 $175,000 Johnson Corporation issues 50,000 shares of its common stock for all of the outstanding shares Johnson's shares have a par value of $4 and a market value of $19 per share. If Smithson's ne k values and fair values of $440,000 and $560,000, respectively, what is the resulting amoun ognized on the post-acquisition balance sheet? 5510,000 $120,000 390,000