Cash and receivables\ $180,000\ $180,000\ \ Computing equipment\ 5,630,000\ 6,820,000\ 7 years\ Patented technology\ 170,000\ 4,140,000\ 5 years\ Trademark\ 220,000\ 2,140,000\ infinite\ Liabilities\ (255,000)\ (255,000)\ \ \ \ \ Goodwill has indefinite useful life.\ \ During the following two years, Adam reported net income and dividends as follows:\ \ Net Income\ Dividends Declared\ 2020\ $\ 1,940,000\ $\ 220,000\ 2021\ \ 2,125,000\ \ 230,000\ \ Required:\ a. How much of Randoms $4,100,000 payment for Adam is attributable to goodwill?\ b. What amount should Random report for its Equity in Investees Income on its income statements for 2020 and 2021?\ c. What amount should Random report for its Investment in Investee on its balance sheets at the end of 2020 and 2021?

Answer rating: 100% (QA)

a To determine how much of Randoms 4100000 payment for Adam is attributable to goodwill we need to c... View the full answer