On March 31, 2016, Wolfson Corporation acquired all of the outstanding common stock of Barney Corporation for $17,000,000 in cash. The book values and fair values of Barney's assets and liabilities were as follows: Fair Value Book Value $ 6,000,000 $ 7,500,000 Current assets Property, plant, and equipment Other assets Current liabilities 11,000,000 1,000,000 4,000,000 6,000,000 14,000,000 1,500,000 4,000,000 5,500,000 Long-term liabilities Required: Calculate the amount paid for goodwill.

On January 1, 2016, Uncle Company purchased 80 percent of Nephew Company's capital stock for $512,000 in cash and other assets. Nephew had a book value of $626,000 and the 20 percent noncontrolling interest fair value was $128,000 on that date. On January 1, 2015, Nephew had acquired 30 percent of Uncle for $283,000. Uncle's appropriately adjusted book value as of that date was $910,000.   Separate operating income figures (not including investment income) for these two companies follow. In addition, Uncle declares and pays $30,000 in dividends to shareholders each year and Nephew distributes $4,000 annually. Any excess fair-value allocations are amortized over a 10-year period.     Year UncleCompany NephewCompany 2016 $ 138,000   $ 34,000   2017   203,000     51,800   2018   236,000     52,600       Assume that Uncle applies the equity method to account for this investment in Nephew. What is the subsidiary's income recognized by Uncle in 2018? What is the net income…

On January 2, 2014, Prunce Company acquired 90% of the outstanding common stock of Sun Company for $180,700 cash. Just before the acquisition, the balance sheets of the two companies were as follows:     Prunce   Sun Cash   $282,130   $ 59,040 Accounts receivable (net)   142,020   24,810 Inventory   118,670   53,230 Plant and equipment (net)   395,640   92,960 Land   62,550   29,220    Total asset   $1,001,010   $259,260           Accounts payable   $106,440   $ 50,420 Mortgage payable   67,320   37,660 Common stock, $2 par value   421,400   76,960 Other contributed capital   217,440   21,970 Retained earnings   188,410   72,250    Total equities   $1,001,010   $259,260 The fair values of Sun Company’s assets and liabilities are equal to their book values with the exception of land.             (a)     Your answer is correct.     Prepare a journal entry to record the purchase of Sun Company’s common stock.…

Parent acquires 80% of Sub for $170,000 on December 31, 2014. In 2015 Sub has net income of $140,000 and paid dividends of $70.000. Amortization of excess fair value over book value for the year was $43,750. What is the Investment in Sub account balance as of December 31, 2015.