THIS IS A TIMED TEST. I need the answer within 2 hours please, thank you very much.
THIS IS A TIMED TEST. I need the answer within 2 hours please, thank you very much.
style=”color:rgb(0,0,0);”>On January 4, 20X8, Longwood Co. paid $400,000 for 21% of the voting common stock of Maxwell Corp. At the time of the investment, Maxwell had net assets with a book value and fair value of $1,600,000. During 20X8, Jones incurred a net loss of $50,000 and paid dividends of $80,000. Any excess cost over book value is attributable to goodwill with an indefinite life.
Required:(1) Prepare a schedule to show the amount of goodwill from Longwood’s investment in Maxwell.(2) Prepare a schedule to show the balance in Longwood’s investment account at December 31, 20X8.
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