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Answer:
Total Green's Investment 329,607.8
Explanation:
Book Value 275,200
Goodwill 25,650
<u>First we calculate the goodwill, which will be amortize over 5 years</u>
Amortization of Goodwill 25,650/5 = 5,130
Goodwill at December 31th 20,520
Next we use proportional equity to adjust the Green's book value Our proportion is 34%
Book Value 275,200
+ 34% of net income 125,120 = 42,540.8
-34% of cash dividends 25,450 = (8,653)
Book Value at December 31th 309,087.8
Book Value at December 31th 309,087.8
Goodwill at December 31th 20,520
Total Green's Investment 329,607.8