Education Corporation purchased all of Agency Co.'s common stock on January 1,2XX2, for $3,000,000 cash....

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Accounting

Education Corporation purchased all of Agency Co.'s common stock on January 1,2XX2, for $3,000,000 cash. Agency's stockholders' equity amounted to $2,100,000. The excess of $900,000 was due to an unrecorded patent with a 15-year life. In 2XX2, Agency reported net income of $750,000 and paid dividends of $75,000.

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