On January 1, 20x8, William Company acquired 30 | Chegg.com
Transcribed image text: On January 1, 20x8, William Company acquired 30 percent of eGate Company's common stock, at underlying book value of $100,000. eGate has 100,000 shares of $2 par value, 7 percent cumulative preferred stock outstanding. No dividends are in arrears. eGate reported net income of $150,000 for 20x8 and paid total dividends of $72,000.