The investments have a fair value of $33,000 on December 31, 2015, and the amount of goodwill (if any) must be determined. Part A1. Using the information above, do value analysis, and record the...

The investments have a fair value of $33,000 on December 31, 2015, and the amount of goodwill (if any) must be determined.

Part A1. Using the information above, do value analysis, and record the acquisition of Iris Company on Garman International’s books on January 1, 2016.

Part A2. Garman International wishes to estimate its pro forma disclosure of operations for 2016 resulting from acquisition of Iris. Pro forma disclosure includes revenue and net income. Projected income statements for 2016 are as follows:

Garman International estimates that the following amount of depreciation and amortization should be taken on the revalued assets of Iris Company:

Part B1. Using the above information, prepare a pro forma income statement for Garman International combined with Iris Company for the year ended December 31, 2016. Schedule your calculations for revenue and net income.