Question $7\mathrm{.}3($Total: $28$ marks$)$

Feather Ltd$.$ invested $$1$ million in Goose Corp. early in the current year, receiving $25\%$ of its outstanding shares. At the time of the purchase, Goose Corp. had a carrying amount of $$3\mathrm{.}2$ million. Goose Corp. pays out $35\%$ of its net income in dividends each year. Assume that Feather Ltd$.$ applies IFRS and that the $25\%$ holding of Goose shares is enough to enable Feather to significantly influence the operating, investing, and financing decisions of Goose.$$

Required$$

Use the information in the following T account for the investment in Goose to answer the following questions$$

Investment in Goose Corp$$

$$1,000,000$

$$

$110,000$

$$

$$

$$38,500$

$$

$14,000$

How much was Feather Ltd$.\text{'}$s share of Goose Corp.$\text{'}$s net income for the year?$$

How much was Feather Ltd$.\text{'}$s share of Goose Corp.$\text{'}$s dividends for the year?$$

How much was Feather Ltd$.\text{'}$s annual depreciation of the excess payment for capital assets?$$

What was Goose Corp.$\text{'}$s total net income for the year?$$

What were Goose Corp.$\text{'}$s total dividends for the year?$$

Assuming that depreciable assets had a remaining useful life of $10$ years when Feather acquired its investment in Goose, how much of the payment in excess of carrying amount was assigned to goodwill?$$

$$

$1.$ How much was Feather Ltd$.\text{'}$s share of Goose Corp.$\text{'}$s net income for the year?

$2.$ How much was Feather Ltd$.\text{'}$s share of Goose Corp.$\text{'}$s dividends for the year?

$3.$ How much was Feather Ltd$.\text{'}$s annual depreciation of the excess payment for capital assets?

$4.$ What was Goose Corp.$\text{'}$s total net income for the year?

$5.$ What were Goose Corp.$\text{'}$s total dividends for the year?

$6.$ Assuming that depreciable assets had a remaining useful life of $10$ years when Feather acquired its investment