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On January 1,2022, Patrick Company purchased 60% of the common stock of Solomon...

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Accounting

On January 1,2022, Patrick Company purchased 60% of the common stock of Solomon Company for $180,000. On this date, Solomon had common stock, other paid-in capital, and retained earnings of $20,000,$60,000, and $120,000 respectively,
On January 1,2022, the only tangible asset of Solomon that was undervalued was land, which was worth $15,000 more than book value.
On January 1,2023, Patrick Company purchased an additional 30% of the common stock of Solomon Company for $140,000.
Net income and dividends for 2 years for Solomon Company were:
\table[[Net income for year,2022,2023],[Dividends, paid-in December,$50,000,$80,000
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