On January 1, 2012, Jones Company Bought 15% of Whitton

Multiple Choice

On January 1, 2012, 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, 2013, Whitton acquired 80% ownership of Jones. The following data are available concerning Whitton's acquisition of Jones: Excess fair value over book value (assigned to trademarks) is amortized over 20 years.
The initial value method is used by both companies.
The following information is available regarding Jones and Whitton:
Compute the amount allocated to trademarks recognized in the January 1, 2013 consolidated balance sheet.

A) $80,000.
B) $100,000.
C) $76,000.
D) $16,000.
E) $-0-