On January 1, 2017, Jones Company bought 15% of Whitton Company. Jones paid $150,000 for these shares, an amount that exactly equaled the proportionate book value of Whitton. On January 1, 2018, Whitton acquired 80% ownership of Jones. The following data are available concerning Whitton's acquisition of Jones: Jones Company Whitton Company?YearReported Separate IncomeDividend IncomeDividends Declared Reported Separate IncomeDividend IncomeDividends Declared?2017$40,000 $6,000 $10,000 $120,000 $0 $40,000 ?2018 50,000 9,000 $14,000 $140,000 $11,200 $60,000 ?? Compute the amount allocated to trademarks recognized in the January 1, 2018 consolidated balance sheet.
A. $100,000.
B. $76,000.
C. $-0-
D. $80,000.
E. $16,000.
Answer: A
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