90 pot 17 On January 1, 2020, Ridge Road Company acquired 30 percent of the voting shares of Sauk Trail, Inc. for $400,000 now tom companies provide commercial Internet support services but serve markets in different industries Ridge Roed made the st gain access to Souk Traits board of directors and thus facilitate future cooperative agreements between the Swo Sems Shrige Bloed quickly obtained several seats on Sauk Trad's board, which gave it the ability to significantly influence Souk Tear's operating and Investing activities The January 1, 2020, carrying amounts and corresponding fair values for Souk Trail's assets and abilities follow Carrying mount 2001228 Cash and receivables Computing equipment Patented technology Trademark Liabilities $ 210,000 5,900,000 210,000 7,100,000 200,000 250,000 (285,000) 4,200,000 2,200,000 (285,000) Also, as of January 1, 2020, Sauk Trail's computing equipment had a seven-year remaining estimated useful life. The patented technology was estimated to have a three-year remaining useful life. The trademark's useful life was considered indefinite Ridge Road attributed to goodwill any unidentified excess cost. During the next two years, Sauk Trail reported the following net income and dividends 2820 2821 Net Income $2,000,000 2,185,000 Dividends Declared $ 250,000 260,000 a. How much of Ridge Road's $4,700,000 payment for Sauk Trail is attributable to goodwill? b. What amount should Ridge Road report for its equity in Sauk Trail's earnings on its income statements for 2020 and 2021? c. What amount should Ridge Road report for its investment in Sauk Trail on its balance sheets at the end of 2020 and 20212 ***