On January Blossom Corp. bought shares of the available common shares of Iceberg Inc., a publicly traded firm. This acquisition provided Blossom with significant influence. Blossom paid $ cash for the investment. At the time of the acquisition, Iceberg reported assets of $ and liabilities of $ Asset values reflected fair market value, except for capital assets that had a net book value of $ and a fair market value of $ These assets had a remaining useful life of five years. For Iceberg reported net income of $ and paid total cash dividends of $
On May Blossom sold of its shares in Iceberg for $ Blossom has no immediate plans to sell its remaining investment in Iceberg.
Iceberg is actively traded, and stock price information follows:
January
$
December
$
January
$
a
Assuming Blossom is using the equity method under ASPE, did the initial investment include a payment for goodwill?
SUPPOR
Payment for goodwill
