What amount of goodwill must the investor report in its post-acquisition consolidated balance sheet on July, 1, 2016?

d. $120,000 2s. Cost method consolidation entries (controlling investment in affiliate, fair value diters r book value) Assume that on January 1, 2014, an investor company purchased 100% of the stock of the investee. On the date of the acquisition, the investee's identifisbie values that approximated their historical book values, except for tangible value that was $90,000 higher than the investee's recorded book value. The a a remaining useful life of 6 years. In addition, the acquisition resulted i good $175,000 recognized in the consolidated financial statements of the investor con the investor company uses the cost method to account for its investment inu amount of the debit in the (C) entry necessary to prepare the consolidated financial year ended December 31, 2016? a. $31,200 b. $44,000 tho c. $60.200 d. $75,200 Computing the amount of goodwill in an acquisition On July 1 , 2016 an investor paid $3,500,000 for 100% of the voting common stock of an investee, The transaction qualifies as a business combination. At that time, investee had the following summarized balance sheet information: 26. LO July 1, 2016 $ 500,000 2,800,000 1,400,000 1,900,000 Current assets Liabilities. Equity On July 1,2016, the fair value of the plant and equipment was $700,000 more than its carrying amount. The acquisition-date fair values approximated their recorded book values for all of the remaining indi- vidual net assets of the investee. Related to this transaction, what amount of goodwill must the investor report in its post-acquisition consolidated balance sheet on July 1, 2016? a. $2,300,000 b. $1,600,000 c. $900,000 d. $700,000 Use the following facts for Multiple Choice problems 27-30. Assume that an investor acquired 100% of the voting common stock of an investee on January 1, 2009 in a transaction that qualifies as a business combination. As a result of the acquisition, the investor goodwill and no bargain purchase gain in the post-acquisition consolidated financial statements the resulting Acquisition Accounting Premium relates to identifiable net assets). The investor (i.e., all of uses the equity hod to account for its pre-consolidation investment in the investee. In addition, there are no intercom ing summarized pre-consolidation financial pany transactions between the investor and investee. The follow statement information is for the year ending December 31, 2016: Investor Investee ..$1,920,000 $256,000 (1.280,000)(128,000) 760,000 128,000 Income Statement 120,000