Bonucci Corporation acquires 80 percent of Verratti Corporation for $41,000,000 on January 1, 2016. At the...

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Bonucci Corporation acquires 80 percent of Verratti Corporation for $41,000,000 on January 1, 2016. At the time of acquisition, Verratti has total net assets with a fair value of $25,100,000. For the years ended December 31, 2016 and December 31, 2017, Verratti reports the following information: YEAR 2016 2017 NET INCOME(LOSS) $2,100,000 $(600,000) DIVIDENDS PAID $1,100,000 $720,000 NOTE: the excess of the acquisition price over the fair value of net assets acquired is assigned to goodwill. Since goodwill has an indefinite life, it is not amortized. What is the value of Bonucci Corporation's investment in Verratti Corporation as of December 31, 2017, under the equity method? Please explain your approach Bonucci Corporation acquires 80 percent of Verratti Corporation for $41,000,000 on January 1, 2016. At the time of acquisition, Verratti has total net assets with a fair value of $25,100,000. For the years ended December 31, 2016 and December 31, 2017, Verratti reports the following information: YEAR 2016 2017 NET INCOME(LOSS) $2,100,000 $(600,000) DIVIDENDS PAID $1,100,000 $720,000 NOTE: the excess of the acquisition price over the fair value of net assets acquired is assigned to goodwill. Since goodwill has an indefinite life, it is not amortized. What is the value of Bonucci Corporation's investment in Verratti Corporation as of December 31, 2017, under the equity method? Please explain your approach

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