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On January 1, 2018, Morey, Inc., exchanged $180,625 for 25 percent of Amsterdam Corporation. Morey appropriately applied the equity method to this investment. At January 1 the book values of Amsterdams assets and liabilities approximated their fair values. On June 30, 2018, Morey paid $654,500 for an additional 70 percent of Amsterdam, thus increasing its overall ownership to 95 percent. The price paid for the 70 percent acquisition was proportionate to Amsterdams total fair value. At June 30, the carrying amounts of Amsterdams assets and liabilities approximated their fair values. Any remaining excess fair value was attributed to goodwill. Amsterdam reports the following amounts at December 31, 2018 (credit balances shown in parentheses): Revenues Expenses Retained earnings, January1 Dividends declared, october 1 Common stock $(324,000) 209,00 (307,500) 20,000 (500, 000) Amsterdams revenue and expenses were distributed evenly throughout the year and no changes in Amsterdams stock have occurred. a. Using the acquisition method, calculate the acquisition-date fair value of Amsterdam to be b. Using the acquisition method, calculate the revaluation gain (or loss) reported by Morey for c. Using the acquisition method, calculate the amount of goodwill recognized by Morey on its d. Using the acquisition method, calculate the noncontrolling interest amount reported by included in Moreys June 30 consolidated financial statements. its 25 percent investment in Amsterdam on June 30. December 31 balance sheet (assume no impairments have been recognized). Morey on its June 30 and December 31 consolidated balance sheet Answer is not complete fair value $ 935,000 Revaluation gain $ 38,750 c. Goodwill d. Noncontrolling interest on June 30 interest on December 31

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