On January 1, 2020, Barber Corp. paid $1,160,000 to acquire Thompson Co. Thompson maintained separate incorporation. Barber used the equity method to account for the investment. The following information is available for Thompson’s assets, liabilities, and stockholders' equity accounts on January 1, 2020:     Book Value Fair Value Current assets $ 130,000   $ 130,000   Land   75,000     193,000   Building (twenty year life)   250,000     276,000   Equipment (ten year life)   540,000     518,000   Current liabilities   26,000     26,000   Long-term liabilities   124,000     124,000   Common stock   233,000         Additional paid-in capital   389,000         Retained earnings   223,000             Thompson earned net income for 2020 of $134,000 and paid dividends of $51,000 during the year.   The 2020 total excess amortization of fair-value allocations is calculated to be?

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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On January 1, 2020, Barber Corp. paid $1,160,000 to acquire Thompson Co. Thompson maintained separate incorporation. Barber used the equity method to account for the investment. The following information is available for Thompson’s assets, liabilities, and stockholders' equity accounts on January 1, 2020:

 

  Book
Value
Fair
Value
Current assets $ 130,000   $ 130,000  
Land   75,000     193,000  
Building (twenty year life)   250,000     276,000  
Equipment (ten year life)   540,000     518,000  
Current liabilities   26,000     26,000  
Long-term liabilities   124,000     124,000  
Common stock   233,000        
Additional paid-in capital   389,000        
Retained earnings   223,000        
 

 

Thompson earned net income for 2020 of $134,000 and paid dividends of $51,000 during the year.

 

The 2020 total excess amortization of fair-value allocations is calculated to be?

 

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