Save & Exit Submit Checimy w TB MC Qu. 01-64 On January 2, 2021, Barley Corp. purchased... On January 2, 2021. Barley Corp. purchased 40% of the voting common stock of Wheat Co., paying $3,000,000. Barley properly accounts for this investment using the equity method. At the time of the investment, Wheat's total stockholders' equity was $5,000,000. Barley gathered the following information about Wheat'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 $1,800,000 2,000,000 700,000 Any excess of cost over fair value was attributed to goodwill, which has not been impaired. Wheat Co. reported net income of $400.000 for 2021, and paid dividends of $200,000 during that year. What is the amount of the excess of purchase price over book value? Multiple Choice On January 1, 2020, Archer, Incorporated, paid $100,000 for a 30% interest in Horley Corporation. This investee had assets with a book value of $550,000 and liabilities of $300,000. A patent held by Harley having a book value of $10,000 was actually worth $40,000 with a six-year remaining life. Any goodwill associated with this acquisition is considered to have an indefinite life. During 2020, Harley reported net Income of $50,000 and paid dividends of $20,000 white in 2021it reported net income of $75.000 and dividends of $30,000 Assume Archer has the ability to significantly influence the operations of Harley The amount allocated to goodwill at January 1, 2020, Multiple Choice $9.000