1. On January 1, 2020, Silver Corporation held an 80% interest in Patriot Corporation and the investment account balance was $900,000. On January 1, 2020, Patriot's total stockholders' equity was $1,125,000. During 2020, Patriot uniformly earned $234,000 and paid dividends of $37,500 on April 1 and again on October 1. On August 1, 2020, Silver sold 30% of its investment in Patriot for $262,500, thereby reducing its interest in Patriot to 56%. Using the actual sales date assumption, you are required to provide: a. Gain or loss on sale. b. Income from Patriot for 2020. c. Noncontrolling interest share for 2020. d. Journal entries for the transaction

2. At December 31, 2020, the stockholders' equity of Patrio Corporation and its 80%-owned subsidiary, Sule Corporation, are as follows:

Patrio Sule Common stock, $10 par value. $20,000 $12,000 Retained earnings 8,000 6,000 Totals $28,000 $18,000 Patrio's Investment in Sule is equal to 80 percent of Sule's book value. Sule Corporation issued 225 additional shares of common stock directly to Patrio on January 1, 2021 at $28 per share. a. Compute the balance in Patrio's Investment in Sule account on January 1, 2021 after the new investment is recorded. b. Determine the increase or decrease in goodwill from Patrio's new investment in the 225 Sule shares. Use four decimal places for the ownership percentage. Assume the fair value and book value of Sule's assets and liabilities are equal.