On January 1, 2017, Wayne Co. purchased 80,000 shares (40%) of
the common stock of Grayson Corp., paying $1,000,000. At that time
Grayson Corp. book value was $2,250,000. Grayson had a equipment
undervalued by $100,000 and a useful life of 5 years. Any other
excess fair value from this transaction was attributable to good
will. During 2015, Grayson reported income of $400,000 and paid
dividends of $160,000. At the close of business on 12/31/2017,
Wayne Co. sold 10,000 shares (or...