On January 1, 2018, Hay Co. paid $610,000 for 30% of the voting common stock of Joy Corp giving it the ability to exerci

[answerhappygod]

On January 1 2018 Hay Co Paid 610 000 For 30 Of The Voting Common Stock Of Joy Corp Giving It The Ability To Exerci 1 (34.29 KiB) Viewed 105 times

On January 1, 2018, Hay Co. paid $610,000 for 30% of the voting common stock of Joy Corp giving it the ability to exercise significant influence over the company. At the time of the investment, Joy had net assets with a book value and fair value of $2,000,000 (no difference existed between the two values). During 2018, Joy incurred a net loss of $75,000 and paid dividends of $110,000. Any excess cost over book value is attributable to goodwill with an indefinite life. Prepare in Excel. Required a) Prepare a schedule to show the amount of goodwill from Hay's investment in Joy. b) Prepare a schedule to show the balance in Hay's investment account at December 31, 2018.