On January 2, 2013, Heinreich Co. paid $500,000 for 25% of the voting common stock of Jones Corp. At the time of the investment, Jones had net assets with a book value and fair value of $1,800,000. During 2013, Jones incurred a net loss of $60,000 and paid dividends of $100,000. Any excess cost over book value is attributable to goodwill with an indefinite life.

Required:

Prepare a schedule to show the amount of goodwill from Heinrich’s investment in Jones.

Answer rating: 100% (QA)

Answer Schedule to show the balance in Heinreichs investment account at ... View the full answer