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Question: on janusry 1 2017 rdge rosd company acquired 20 percent...

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On Janusry 1 2017, Rdge Rosd Company acquired 20 percent of the vating shares of Sauk Tral, Inc., for $2,800,000 n cssh. Bath companies provide commercIsl Internet support services but serve market; Tn cferent1ndustries. Riage Rosa modethe lnvestment to gain acces to Sauk Trals board of directors and thus facitate future cooperstve sgreements between the two firma. Ridge Road quickly obtained severa sests on S5uk Trīrs board which gove t the ablity to 읽gnflcanty Influence Sauk Trais operating and nvesting activite. The Jsnusry 1, 2017, carrying smaunts snd corresponding falr values for Sauk Trals ssseta and ablites follaw Carrying Fair Valuc Cash and receivables 115,eee 115,eee Corputing cquipnent ,845,888,788,880 Patented technology Tradenark Liabilities 85,888 4,81e,88 55,809 2,818,880 (198,ee) (198,880) Also sa of January 1, 2017, Sauk Trails computing equipment had a seven-year remaining estimated useful Iife. The patented technology was estimated to have a fouryear remalning useful life. The trademarks useful life was consldered Indefinte. Rldge Rosd tbuted to goadwill sny un dentflied exeesa cost During the next two yesrs, Sauk Tral reparted the following net Income and dlvidends: Dividends Net Incone Declared 2917 $1.81e.eee 菖155,eea 2818 1,995,ee 165, ee8 a. How much of Ridge Rosds $2800,000 psyment for Sauk Trail attrbutable to goacwll b. Whst amount should Rdge Rosd report for its equity In Sauk Trairs eamings on lits Income statements for 2017 and 20193 c. Wh5tsmourt should Rdge Rosa report for its investment in Sauk Trail on talence sheets at tne end of 2017 and 2018? Complcte this qucstion by entering your answers in the tabs below. oq B and C Haw much af Ridge Roads $2,800,000 payment for Sauk Trail is attnibutable to goodwi? 《 Req A Req B and C 》

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