Question & Answer: C O eztomheducation.com/mtp On January 1, 2015, Morey, Inc., exchanged $177,075 for 25 percent of Amsterdam Corporation. Morey appropriately ap…..

C O eztomheducation.com/mtp On January 1, 2015, Morey, Inc., exchanged $177,075 for 25 percent of Amsterdam Corporation. Morey appropriately applied the equity method to this investment. At January 1, the book values of Amsterdam’s assets and liabilities approximated their fair values. On June 30, 2015, Morey paid $584,500 for an additional 70 percent of Amsterdam, thus increasing its overall ownership to 95 percent. The price paid for the 70 percent acquisition was proportionate to Amsterdam’s total fair value. At June 30, approximated their fair values. Any remaining excess fair value was attributed to goodwill. the carrying amounts of Amsterdam’s assets and liabilities Amsterdam reports the following amounts at December 31, 2015 (credit balances shown in parentheses): S(333,000) 216,000 Retained earnings, January 1 (203,300) Dividends declared, October 1 20,000 (500,000) Revenues Common stock Amsterdam’s revenue and expenses were distributed evenly throughout the year and no changes in Amsterdam’s stock have occurred a. Using the acquisition method, calculate the acquisition-date fair value of Amsterdam to be included in Morey’s consolidated financial statements. b. Using the acquisition method, calculate the revaluation gain (or loss) reported by Morey for its 25 percent investment in Amsterdam on June 30. c. Using the acquisition method, calculate the amount of goodwill recognized by Morey on its December 31