Question No$.2(8$ Marks$)$:

On January $1,2019,$ HIGH Company acquired $20$ percent of the voting shares of LOW, Inc. for $$3,000,000$ in cash. The January $1,2019,$ Book Values and corresponding fair values for LOW's assets and liabilities follow:

$\backslash$table$[[$Account$,$Book Value,Fair Value$],[$Cash and receivables,$$2,000,000,$$$2,000,000],[$Computing equipment,$3,000,000,5,000,000],[$Patented technology,$1,000,000,3,000,000],[$Trademark$,1,000,000,2,000,000],[$Liabilities$,2,000,000,2,000,000]]$

Also, as of January $1,2019,$ LOW's computing equipment had an $8-$year remaining estimated useful life. The patented technology was estimated to have a $4-$year remaining useful life. The trademark's useful life was considered indefinite. HIGH attributed to goodwill any unidentified excess cost.

During the $2019,$ LOW reported the following net income and dividends:

$\backslash$table$[[$Year$,$Net Income,Dividends Declared$],[2019,$$$1,000,000,$$$250,000$