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Pa Re Re Part 4B The 3 requirements below are unrelated and independent. R Requirement 1: Determine the acquisition cost for each asset acquired in 2018 by Puppy Wonder Co (PWC Pwc). PWC paid $500,000 and issued a 3-year, $2,000,000 noninterest-bearing note to acquire Land. PWC normally borrows at 10%. In addition, PwC paid commissions and closing costs of $25,000; fees to clear and grade the land of $20,000; and $30,000 for a parking lot. Later in the year, PWC paid $600,000 in a transaction to purchase Transportation Equipment and Machinery with fair values of $500,000 and $300,000, respectively. Requirement 2: At the beginning of 2018, Big Money purchased an investment in a bond for $100,000. The fair value of the bond at the end of 2018 was $105,000. The bond was sold in 2019 for $120,000. If the bond investment was classified as a trading security, how much of the $20,000 gain on the investment would be included in: If the bond investment was classified as an available-for-sale security, how much of the $20,000 gain on the investment would be included in: Requirement 3: At the end of 2018, Harden Co. estimated that the fair value of the company as a whole exceeded the fair value of the sum of Harden's net assets by $7,000,000. What entry did Harden make to record Goodwill? Requirement 4: In 2018, Barkley Co. purchased 40% of the outstanding common stock of NBA, Inc. for $8,000,000. In 2018, Barkley received $200,000 in dividends from NBA. NBA's 2018 net income was $1,500,000. At the end of 2018, the fair value of the investment was $8,300,000. Determine the amount reported on Barkley's 2018 balance sheet for the Investment in NBA common stock

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