An investor purchases a 40% interest in an investee company, and the investor concludes that it can exert significant influence over the investee. The book value of the investee's Stockholders' Equity on the acquisition date is $750,000, and the investor purchases its 40% interest for $380,000. The investee's net assets have an incremental fair value of $130,000. This includes equipment that is undervalued by $8,000, with a remaining useful life of 2 years, a building that is undervalued by $140,000, with a useful life of 14 years, and a long-term note (liability) which is undervalued by $18,000, with a useful life of 9 years. Subsequent to the acquisition, the investee reports net income of $180,000, $160,000, and $190,000 for the following years, and pays annual cash dividend of $10,000. 1. How much goodwill is implied in the investment? 0 X 2. What was the amount of amortization for the incremental fair value that the investor credited the investment account in the first year? O X 3. What was the amount of amortization for the incremental fair value that the investor credited the investment account in the third year? 0 x 4. What was the value of the investment at the end of the first three years of investment? O X 5. What amount did the investor report as equity earnings in the second year? O X