On January $1,2022,$ Jackie Corp. purchased $30\%$ of the voting common stock of Rob Co$.,$ paying $$2,000,000.$ Jackie properly accounts for this investment using the equity method. At the time of the investment, Rob$$s total stockholders$$ equity was $$3,000,000.$ Jackie gathered the following information about Rob$$s assets and liabilities whose book values and fair values differed:

Book Value Fair Value

Buildings $(15-$year life$)$ $$1,000,000\mathrm{.}00$ $$1,500,000\mathrm{.}00$

Equipment $(5-$year life$)$ $$2,500,000\mathrm{.}00$ $$3,000,000\mathrm{.}00$

Franchises $(10-$year life$)0\mathrm{.}00500,000\mathrm{.}00$

Any excess of cost over fair value was attributed to goodwill, which has not been impaired. Rob Co$.$ reported net income of $$300,000$ for $2018,$ and paid dividends of $$100,000$ during that year.

$1.$ What is the amount of the excess of purchase price over book value?

a$.$ $$(1,000,000.)$

b$.$ $ $400,000.$

c$.$ $ $800,000.$

d$.$ $ $1,000,000.$

e$.$ $ $1,100,000.$

$2.$ What is the amount of excess amortization expense for Jackie Corp$$s investment in Rob Co$.$ for year $2022?$

a$.$ $ $0.$

b$.$ $$30,000.$

c$.$ $$40,000.$

d$.$ $$55,000.$

e$.$ $$60,000$

$3.$ How much goodwill is associated with this investment?

a$.$ $$(500,000.)$

b$.$ $ $0.$

c$.$ $ $650,000.$

d$.$ $$1,000,000.$

e$.$ $$2,000,000.$

$4.$ What is the balance in Jackie Corp$$s Investment in Rob Co$.$ account at December $31,2022?$

a$.2,000,000.$

b$.$ $$2,005,000.$

c$.$ $$2,060,000.$

d$.$ $$2,090,000.$

e$.$ $$2,200,000.$

$5.$ In an acquisition where $100\%$ control is acquired, how would the land accounts of the parent and the land accounts of the subsidiary be reported on consolidated financial statements?

a$.$ Book Value Book Value

b$.$ Book Value Fair Value

c$.$ Fair Value Fair Value

d$.$ Fair Value Book Value

e$.$ Cost Cost