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Spider Sense Inc. purchased 30% of the outstanding common shares of Venom Corp. ...

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Accounting

Spider Sense Inc. purchased 30% of the outstanding common shares of Venom Corp.
for $450,000, which is based on a market price that is higher than the book value of
the shares. The difference to be adjusted to investment income over time is $90.000.
Management paid in excess of the book value on this transaction as they believed
that the fair market value of a significant piece of real estate (a building) is much
higher than the carrying value of the asset on the books. The remaining useful life of
the building is 30 years. How much is the adjustment on a yearly basis?
A) $90,000
B) $6,000
C) $3,000
D) $450,000
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