Calculate the excess of cost over bv acquired

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Point 1: On 1 January 2018, Gamma, Inc. paid $225,000 for a 20 percent interest in Subsidiary Corporation's common stock. This investee had assets with a book value of $890,000 and liabilities of $650,000. A patent held by subsidiary having a $55,000 book value was actually worth $200,000. This patent had a 5-year remaining life. Any further excess cost associated with this acquisition was attributed to Goodwill. During 2018, subsidiary earned income of $24,000 and paid dividends of $4,800. In 2019, it had income of $65,000 and paid dividends of $13,000.

Question 1. Calculate the excess of Cost over BV acquired.

Reference no: EM132485522

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