Sandpiper Inc. acquired a 30% interest in Shore Corporation for $27,000 cash on January 1, 2013, when Shore's stockholders' equity consisted of $30,000 of capital stock and $20,000 of retained earnings. Shore Corporation reported net income of $18,000 for 2013. The allocation of the $12,000 excess of cost over book value acquired on January 1 is shown below, along with information relating to the useful lives of the items:

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The Answer of Sandpiper Inc. acquired a 30% interest in Shore Corporation for $27,000 cash on January 1, 2013, when Shore's stockholders' equity consisted of $30,000 of capital stock and $20,000 of retained earnings. Shore Corporation reported net income of $18,000 for 2013. The allocation of the $12,000 excess of cost over book value acquired on January 1 is shown below, along with information relating to the useful lives of the items: