Lesala Corporation purchased most of the capital stock of its subsidiary in 1977. The subsidiary earned \(\$ 1\) million in 1979 but declared no dividends. The following is an excerpt from Lesala Corporation's financial statements issued for 1979:

a What percentage of the consolidated subsidiary does Lesala Corporation own?
b Goodwill arising from the acquisition of the consolidated subsidiary is being amortized using the straight-line method to show the minimum charges allowed by generally accepted accounting principles. What was the excess of the subsidiary's market value as a going concern over the market value of the actual assets shown on its books as of the date of acquisition? Assume that the acquisition occurred on January 1, 1977

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Lesala Corporation Consolidated Statement of Changes in Financial Position For the Year 1979 Sources of Working Capital: Consolidated Net Income Addback Charges Not Requiring Working Capital: Depreciation of Plant Amortization of Goodwill Arising from Acquisition of Consolidated Subsidiary Minority Interest in Earnings of Consolidated Subsidiary Total Working Capital from Operations $3,000,000 $150,000 10,000 200,000 360,000 $3,360,000