3.P company paid $3,600,000 in cash, to acquire 90% of S company on January 1, 2014....

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3.P company paid $3,600,000 in cash, to acquire 90% of S company on January 1, 2014. The total stockholder's equity of S company at that time was $5,000,000. Below are the assets and liabilities of S company book value that differ with the fair value on 1/1.2014: - inventory (sold in the current year) was overvalued by $200,000. - lands was overvalued by $500,000. -equipment remaining life of 4 years was undervalued by $400,000 - building (remaining life of 5 years) was overvalued by $750,000. - notes receivable (due in 4 years) was undervalued by $200,000. S company declared a dividend of $150,000, for March and June 2014 each. S company net income for the year was $1,000,000. Required: 1- calculate Goodwill that should be reported in the consolidated balance sheet. 2- calculate income from S company for 2014. * 3.P company paid $3,600,000 in cash, to acquire 90% of S company on January 1, 2014. The total stockholder's equity of S company at that time was $5,000,000. Below are the assets and liabilities of S company book value that differ with the fair value on 1/1.2014: - inventory (sold in the current year) was overvalued by $200,000. - lands was overvalued by $500,000. -equipment remaining life of 4 years was undervalued by $400,000 - building (remaining life of 5 years) was overvalued by $750,000. - notes receivable (due in 4 years) was undervalued by $200,000. S company declared a dividend of $150,000, for March and June 2014 each. S company net income for the year was $1,000,000. Required: 1- calculate Goodwill that should be reported in the consolidated balance sheet. 2- calculate income from S company for 2014. *