ZERO TWO Company, a large multinational technology company which is behind the latest humanoid product called FRANXX, purchased 30% of the outstanding ordinary shares of HIRO Corporation, a rising technology company for 5,600,000 at the beginning of 2020. The acquisition cost is composed of the following: 1,600,000 was paid in cash and 4,000,000 is in a form of note that will be payable 10 years from now and is bearing 12% annual interest at every year-end. HIRO's shareholders' equity as of the time of acquisition has a balance of 18,000,000. ZERO TWO additionally paid 800,000 for broker's fee- this fee was for the broker who assisted ZERO TWO in the search and negotiation with HIRO. Also, as of such date, the fair values of HIRO's identifiable assets and liabilities were equal to their carrying amounts except for a skyscraper building in Tokyo which had a fair value in excess of the carrying amount of 3,000,000 with a total estimated useful life of 10 years starting the completion of the skyscraper, but with the remaining estimated life of 6 years starting from acquisition by ZERO TWO.

During 2020, HIRO reported net income of 5,000,000 and paid cash dividend of 2,000,000. Also during this year, ZERO TWO reported net income 15,000,000 and paid cash dividend amounting to 7,000,000.

Question 1: How much is the total acquisition cost paid by ZERO TWO to acquire 30% of HIRO's ordinary shares?

Question 2: What is the implied goodwill from ZERO TWO's purchase/acquisition?

Question 3: The excess attributable to HIRO's skyscraper building should be amortized for?

Group of answer choices

should be wholly recognized at the end of the year

6 years

10 years

4 years

Question 4: What amount of income should be reported for the current year as a result of the investment?

Question 5: What is the carrying amount of the investment in associate at year-end?