On january 2, 2019, lucy corp. purchased 40% of the voting common stock of charlie co., paying $3,500,000. lucy properly accounts for this investment using the equity method. at the time of the investment, charlie’s total stockholders’ equity was $5,000,000. lucy gathered the following information about charlie’s assets and liabilities whose book values and fair market values differed: book value fair market value buildings (20-year life) $1,000,000 $1,800,000 equipment (5-year life) 1,500,000 2,000,000 franchises (10-year life) 0 600,000 any excess of cost over fair value was attributed to goodwill, which has not been impaired. charlie reported net income of $400,000 for 2019, and paid dividends of $200,000 during that year. what is the amount of the excess purchase price over book value? what is the amount of excess amortization for bailey's investment in emery for the first year? $80,000 $200,000 $160,000 $84,000 2 points question 5 lewis inc. owns 40% of morgan and applies the equity method. during the current year, lewis buys inventory costing $400,000 and sells it to morgan for $700,000. at the end of the year, morgan still holds $140,000 of this merchandise. what amount of unrealized gross profit must lewis defer in reporting this investment using the equity method? $24,000 $56,000 $60,000 $140,000 2 points