On January 3, 2021, Heinreich Co. paid $500,000 for 25% of the voting common stock of Jones Corp. At the time of the investment, Jones had net assets with a book value and fair value of $1,800,000. During 2021, Jones incurred a net loss of $60,000 and paid dividends of $100,000. Any excess cost over book value is attributable to goodwill with an indefinite life.Required:1) Prepare a schedule to show the amount of goodwill from Heinrich's investment in Jones.2) Prepare a schedule to show the balance in Heinreich's investment account at December 31, 2021.

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The Answer of On January 3, 2021, Heinreich Co. paid $500,000 for 25% of the voting common stock of Jones Corp. At the time of the investment, Jones had net assets with a book value and fair value of $1,800,000. During 2021, Jones incurred a net loss of $60,000 and paid dividends of $100,000. Any excess cost over book value is attributable to goodwill with an indefinite life.Required:1) Prepare a schedule to show the amount of goodwill from Heinrich's investment in Jones.2) Prepare a schedule to show the balance in Heinreich's investment account at December 31, 2021.