on january 1, 2020 dawson, incorporated, paid $90,000 for a 25% interest in sacco corporation. this investee had assets with a book value of $510,000 and liabilities of $310,000. a patent held by sacco having a book value of $10,000 was actually worth $40,000 with a six year remaining life. any goodwill associated with this acquisition is considered to have an indefinite life. during 2020, sacco reported income of $50,000 and paid dividends of $20,000 while in 2020 it reported income of $75,000 and dividends of $30,000. assume dawson has the ability to significantly influence the operations of sacco.



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