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SAGE Company

Sage Company bought 40% of an investee on January 1, 2020 for 400,000. The carrying amount of the investee's net assets at the purchase date totaled 900,000. Fair value and carrying amounts were the same for all items except for plant and inventory, for which fair values exceeded their carrying amounts by 90,000 and 10,000, respectively. The plant has an eighteen-year remaining life. All inventory was sold during 2020.During 2020, the investee reported net income of 120,000 and paid 20,000 cash dividend.

Question 1:What is the implied goodwill from the acquisition of investee's net assets, if any?

Question 2:What is the investment income to be reported by SAGE during 2020, if any?

Question 3:What is the carrying amount of investment in associate to be reported by SAGE at the end of 2020, if any?