Reference no: EM133228322
On January 1, 2022, Pronto Company acquired all of Speedy Inc.'s voting stock for $28,800,000. Speedy's net assets were reported at amounts approximating book value, but Pronto determined that Speedy had the following previously unreported intangible assets:
• Developed technology, fair value $2,400,000, 5-year life
• Favorable leases, fair value $1,200,000, 4-year life
Speedy's shareholders' equity on January 1, 2022, was $12,000,000. It is now December 31, 2023 (two years later). Speedy reported net income of $960,000 in 2022. There are no impairments of identifiable intangibles or goodwill in 2022 or 2023. Pronto uses the complete equity method to report its investment in Speedy on its own books. Speedy's December 31, 2023, trial balance appears below.
Dr (Cr)
Current assets $24,000,000
Property and equipment, net 60,000,000
Liabilities (69,600,000)
Capital stock (2,400,000)
Retained earnings, January 1 (10,560,000)
Sales revenue (84,000,000)
Cost of goods sold 72,000,000
Operating expenses 10,560,000
$0
What is the amount of goodwill reported on the consolidated balance sheet at December 31, 2023?