Reference no: EM131759403

Question: Fox, Incorporated purchased 70 percent of Hen House Enterprises on March 1, 2015 for $2,150,000. At that time Hen House had inventory appraised at $214,000 more than book value and plant assets appraised at $450,000 more than book value. Fox estimated that it paid $1,200,000 for goodwill. The estimated remaining lives were five months and ten years for inventory and plant assets, respectively. The following table presents the income earned by Hen House from the acquisition date until the end of 2017.

                               Income              Dividends
Mar. 1,-Dec. 31,

2015                        $340,000            $180,000

2016                          550,000             230,000

2017                          520,000             250,000

Determine the Investment in Hen House account balances at December 31, 2015, 2016, and 2017 assuming that it is determined that goodwill impairment requires writing off 60 percent of the goodwill in 2016.