1.2.1 - u - Date Event*Smith purchased Barker's stock*Smith...

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Date Event 10/01/13 h purchased Barker's 07/01/14 h purchased Barker's 12/31/15 h purchased Barker's 01/01/13 Book value Year Reported Income 2013 $20,000 2014 $30,000 2015 $24,000 *Available-for-Sale Investments All income earned uniformly each year Dividends are paid quarterly Book values = fair values Excess cost relates to identifiable intangible assets Excess cost is amortized over 15 years Proportionded amortization based on months a. What would Smith report as income derived from the invesm 2013 $115.00 2014 $1,300.00 2015 $5,240 b. As of Decemeber 31 2015, what should Smith report as an in $56,575.00
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Percentage Amount 2013 5% $7,475 10/1/2015 10% $14,900 10/1/2015 20% $34,200 $100,000 Dividends $8,000 $112,000 2013 $16,000 $126,000 $9,000 $141,000 2014 7/1/2015 7/1/2015 2014 2015 mtent in Barker in 2016? nvesment in Barker on Balance Sheet?
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$1,666.67 $666.67 Monthly Investment $15,000.00 $6,000.00 $250.00 3-months $115.00 $109,000.00 Book value $5,450.00 BV at Purchase date $2,025.00 PP-BV $135.00 Amortization $112,000 Ending book value $2,500 $1,333.33 $15,000 $8,000.00 $1,500 $1,300.00 $119,000.00 Book value $11,900.00 BV at purchase date $3,000.00 PP-BV $200.00 Amortization $126,000 Ending book value $141,000 Ending book value $28,200 BV at purchase date $5,640 $5,240 $6,000 PP-BV $400 Amortization $735.00 Total Amortization
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