Assume that, on January 1, 2021, Sycamore Corp. paid $2,040,000 for its investment in 36,000 shares of Starfish Inc. Further, assume that Starfish has 120,000 total shares of stock issued and estimates an eight-year remaining useful life and straight-line depreciation with no residual value for its depreciable assets. At January 1, 2021, the book value of Starfish's identifiable net assets was $7,060,000, and the fair value of Starfish was $10,0o00,000. The difference between Starfish's fair value and the book value of its identifiable net assets is attributable to $1,950,000 of land and the remainder to depreciable assets. Goodwill was not part of this transaction. The following information pertains to Starfish during 2021: $600,000 $360,000 Net Income Dividends declared and paid Market price of common stock on 12/31/2021 $ 80/share What amount would Sycamore Corp. report in its year-end 2021 balance sheet for its investment in Starfish Inc.? Multiple Choice $2,074,875. $2,220,000. $2,240,000.

On January 1, 2022, William Corp. (qualifies as SME) paid cash of P600,000 for all the outstanding shares of Kate Company. The carrying value of the assets and liabilities of Kate on January 1, 2022 follow: Accounts Receivable Inventory • Plant & Equipment (net of Accumulated Depreciation of P220,000) Goodwill Liabilities P90,000 180,000 320,000 100,000 120,000 On January 1, 2022 Kate inventory had a fair value of P150,000 and plant & equipment (net) had a fair value of P380,000. Cost of arranging the combination are as follows: legal fees for combination, P30,000; finder's fee, P50,000; other miscellaneous direct costs, P25,000. Net income of William and Kate for 2022 amounts to P188,000 and P60,000, respectively. William received dividend of P18,000 from Kate during 2022. The PPE has original useful life of 10 years and was already held for 4 years as of date of acquisition. Determine the amount of Goodwill on the Consolidated balance sheet on December 31, 2022.

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On March 31, 2024, Wolfson Corporation acquired all of the outstanding common stock of Barney Corporation for $18,500,000 in cash. The book values and fair values of Barney’s assets and liabilities were as follows: Book Value Fair Value Current assets $ 7,500,000 $ 9,000,000 Property, plant, and equipment 12,500,000 15,500,000 Other assets 1,150,000 1,650,000 Current liabilities 5,500,000 5,500,000 Long-term liabilities 7,500,000 7,000,000 Required: Calculate the amount paid for goodwill.