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Any excess cost over book value is attributable to goodwill with an indefinite life.
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Dodge, Incorporated acquires 15% of Gates Corporation on January 1, 2011, for $105,000 when the book value of Gates was $600,000. During 2011 Gates reported net income of $150,000 and paid dividends of $50,000. On January 2, 2012, Dodge purchased an additional 25% of Gates for $200,000. Any excess ...
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