3-A: (5 marks) Pace Corporation owns 70% of Aba Corporation and 60% of Babon Corporation. Aba Corporation owns 20% of Babon Corporation. Pace's investment in Aba was consummated at a purchase price $20,000 in excess of the book value. Pace's purchase of Babon was made in one transaction at a price of $30,000 above book value. Aba's investment in Babon was completed at a purchase price of $10,000 in excess of the book value. The purchase price differential for all three investments was attributable to goodwill. (There were no fair value/book value differences in assets and liabilities for each investment.) Pace's separate net income for the current year is $100,000. Aba's separate net income is $190,000, which includes a $10,000 unrealized loss on the sale of land to Pace. Babon's separate net income is $150,000. Required: Compute the income from subsidiaries, the consolidated net income, and the non- controlling interest income (MI Expenses). Question 3-B: (5 marks) Paine Corporation owns 90% of Anan Corporation, Anan Corporation owns 85% of Badee Corporation and Badee Corporation owns 5% of Anan Corporation. The separate net incomes (excluding investment income) of Paine, Anan, and Badee are $400,000, $160,000, and $220,000, respectively. Assume the investments were acquired at a cost equal to the book value of each investment, which also equals the fair value. Required: 1. Calculate revised net incomes for Paine, Anan, and Badee by using the conventional (equation) method. 2. Determine the controlling interest share of consolidated net income and the noncontrolling interest shares