1 Required information On January 1, 2017, Dawson, Incorporated, paid $100,000 f

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1 Required information On January 1, 2017, Dawson, Incorporated, paid $100,000 for a 30% interest in Sacco Corporation. This investee had assets with a book value of $550,000 and liabilities of $300,000. A patent held by Sacco 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 2017, Sacco reported net income of $50,000 and paid dividends of $20,000 while in 2018 it reported net income of $75,000 and dividends of $30,000. Assume Dawson has the ability to significantly influence the operations of Sacco Part 2 of2 10 points Skipped The balance in the Investment in Sacco account at December 31, 2018, is:

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Initial Investment $        100,000 Share in Dividend (20000*30%) $          (6,000) Share in Net Income(50000*30%) $          15,000 Additional Amortization(5000*30%)* $          (1,500) Investment as on 31st Dec 2017 $        107,500 Share in Dividend (30000*30%) $          (9,000) Share in Net Income(75000*30%) $          22,500 Additional Amortization(5000*30%) $          (1,500) Investment as on 31st Dec 2018 $        119,500

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