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16) On January 4, 2013, Bailey Corp purchased 40% of the voting common stock of Emeny Co paying $3,000,000. Bailey properly accounts for this investment using the equity met time of the investment, Emery's total stockholders' equity was $5,000,000. Bailey gathered the following information about Emery's assets and liabilities whose book values and fair values differed: Buildings (20-year life) Equipment (5-year life Franchises (10-year life) Book Value $1,000,000 1,500,000 Fair Value S1,800,000 2,000,000 700,000 excess of cost over fair value was attributed to goodwill, which has not been impaired. Emery Co. reported net income of $400,000 for 2013, and paid dividends of $200,000 during that year. What is the amount of excess amortization expense for Bailey's investment in Emery for the first year? A) $400,000. B) $100,000. C) S160,000. D) $O. E) $84,000