Determine the amounts related to the investment

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Question - On January 2, 2018, Miller Properties paid $26 million for 1 million shares of Marlon Company's 6 million outstanding common shares. Miller's CEO became a member of Marlon's board of directors during the first quarter of 2018.

The carrying amount of Marlon's net assets was $107 million. Miller estimated the fair value of those net assets to be the same except for a patent valued at $24 million above cost. The remaining amortization period for the patent is 10 years.

Marlon reported earnings of $48 million and paid dividends of $9 million during 2018. On December 31, 2018, Marlon's common stock was trading on the NYSE at $25.50 per share.

Required - Assume Miller accounts for its investment in Marlon using the equity method. Ignoring income taxes, determine the amounts related to the investment to be reported in its 2018.

Reference no: EM132772112

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