On January $1,2022,$ Blossom Corp. bought $35,000$ shares of the available $100,000$ common shares of Iceberg Inc., a publicly traded firm. This acquisition provided Blossom with significant influence. Blossom paid $$695,000$ cash for the investment. At the time of the acquisition, Iceberg reported assets of $$2,514,000$ and liabilities of $$1,190,000.$ Asset values reflected fair market value, except for capital assets that had a net book value of $$513,000$ and a fair market value of $$745,000.$ These assets had a remaining useful life of five years. For $2022$ Iceberg reported net income of $$393,000$ and paid total cash dividends of $$100,000.$

On May $16,2023,$ Blossom sold $17,500$ of its shares in Iceberg for $$425,000.$ Blossom has no immediate plans to sell its remaining investment in Iceberg.

Iceberg is actively traded, and stock price information follows:

January $1,2022$

$$23$

December $31,2022$

$$25$

January $1,2023$

$$26$

$($a$)$

Assuming Blossom is using the equity method under ASPE, did the initial investment include a payment for goodwill?

SUPPOR

Payment for goodwill