Answer:
A. $30,000
B. $250,000
C. $190,000
Explanation:
A. Calculation for What amount of 2019 Equity Income was recognized by Everlasting
Based on the information given the amount of 2019 Equity Income that was recognized by Everlasting will be $30,000 which is FIFO Inventory Undervalued amount.
B. Calculation for 2019 consolidated net income
Everlasting had income from its own operations of $220,000
Add FIFO Inventory --Undervalued, $30,000
Consolidated net income $250,000
C. Calculation for What amount of goodwill appeared on the consolidated balance sheet at December 31, 2019
Cost of Acquisition $650,000
Less: Book value $320,000
FIFO Inventory --Undervalued, $30,000
Land--Undervalued, $10,000
Equipment , $75,000
Patent, $25,000
Goodwill $190,000
