On January 1, 2021, Yzerman, Incorporated, paid $200,000 for a 30% interest in Lidstrom Corporation. This investee had a

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On January 1 2021 Yzerman Incorporated Paid 200 000 For A 30 Interest In Lidstrom Corporation This Investee Had A 1 (75.99 KiB) Viewed 50 times

On January 1, 2021, Yzerman, Incorporated, paid $200,000 for a 30% interest in Lidstrom Corporation. This investee had assets with a book value of $550,000 and liabilities of $300,000. A patent held by Lidstrom having a book value of $10,000 was actually worth $40,000 with a six-year remaining life. Any goodwill associated with this acquisition is considered to have an indefinite life. During 2021, Lidstrom reported net income of $60,000 and paid dividends of $20,000 while in 2022 it reported net income of $75,000 and dividends of $30,000. Assume Yzerman has the ability to significantly influence the operations of Lidstrom. 4) The amount allocated to goodwill at January 1, 2021, is: 4) A) $13,000. B) $10,000. C) $116,000. D) $25,000. E) $109,000.