On January Stream Company acquired percent of the outstanding voting shares of QVideo, Incorporated, for $Video manufactures specialty cables for computer monitors. On that date, Video reported assets and liabilities with book values of $ million and $ respectively. A customer list compiled by Video had an appraised value of $ although it was notrecorded on its books. The expected remaining life of the customer list was twenty years with straightline amortization deemed appropriate. Any remaining excess cost was not identifiable with any particular asset and thus was considered gooodwill.
QVideo generated net income of $ in and a net loss of $ in In each of these two years, Video declared and paid a cash dividend of $ to its stockholders.
During QVideo sold inventory that had an original cost of $ to Stream for $ Of this balance, $ was resold to outsiders during and the remainder was sold during In QVideo sold inventory to Stream for $ This inventory had cost only $ Stream resold $ of the inventory during and the rest during
Required:
For and then for compute the amount that Stream should report as income from its investment in QVideo in its external financial statements under the equity method.
Note: Enter your answers in whole dollars and not in millions.
tableEquity income,ofEquity loss,of
