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  3. on january 1, 2020. archer, incorporated, paid $10

On January 1, 2020. Archer, Incorporated, paid $100,000 for a 30%...

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Accounting

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On January 1, 2020. Archer, Incorporated, paid $100,000 for a 30% interest in Harley Corporation. This investee had assets with a book value of $555,000 and liabilities of $300,000. A patent held by Harley having a book value of $10,000 was actually worth $40,000 with a three-year remaining life. Any goodwill associated with this acquisition is considered to have an indefinite life. During 2020, Harley reported net income of $50,000 and paid dividends of $20,000 while in 2021 it reported net income of $75,000 and dividends of $30,000. Assume Archer has the ability to significantly influence the operations of Harley. The amount allocated to goodwill at January 1, 2020. is A The A equity in income of Harley for 2020, is The equity in income of Harley for 2021, is A/ The balance in the Investment in Harley account at December 31, 2020. is AJ The balance in the Investment in Harley account at December 31, 2021, is A Page 12 of 19 Previous Page Next Page

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