3. Parent Company acquired 100% of Filia Inc. on January 31, 20x2 in exchange for cash. The book value of Filia's individual assets and liabilities approximated their acquisition-date fair values. On the date of acquisition, Filia reported the following: $ 175,000 Current Liabilities Cash $ 60.000 Inventory 50,000 Plant Assets (net) 160,000 Common Stock 50,000 Property 250,000 Retained Earnings 525.000 Total Assets $ 635.000 Total Liabilities & Equity5 635,000 a. During the first year, the sub's income was 210,000 and they paid $15,000 in dividends. What is the value of the investment in sub at year-end? What income will parent report as income from sub? ABC b. Parent purchases sub for $170,000. Sub's frox = NAV except inventory + 10,000 and patent with a 5 yr life, +25,000. What is the differential? Goodwill? How will the differential affect the first year's income from sub