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Player Corporation purchased 100 percent of Scout Company's common stock on January 1, 2005, and...

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Accounting

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Player Corporation purchased 100 percent of Scout Company's common stock on January 1, 2005, and paid $32,000 above book value. The full amount of the additional payment was attributed to amortizable assets with a life of eight years remaining at January 1, 2005. During 20x5 and 20X6, Scout reported net income of $49.000 and $7.000 and paid dividends of $18,000 and $15.000, respectively. Player uses the equity method in accounting for its investment in Scout and reported a balance in its investment account of $175,000 on December 31, 20X6. Required: Compute the amount paid by Player to purchase Scout shares

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