Answers given. Please explain the calculations.

The following information applies to Questions 38-40:

On January 1, 2019, Everlasting, Inc. purchased Comet Corporation for $650,000. On that date the net assets of Comet had a book value of $320,000, and book values were equal to fair values with the following exceptions:

FIFO Inventory --Undervalued, $30,000

Land--Undervalued, $10,000

Equipment (5 year life)--Undervalued, $75,000

Patent (5-year life)--Undervalued, $25,000

During 2019, Everlasting had income from its own operations of $220,000 and Comet had net income of $80,000.

38. What amount of 2019 Equity Income was recognized by Everlasting?

d. $30,000

39. What is 2019 consolidated net income?

a. $250,000

40. What amount of goodwill appeared on the consolidated balance sheet at December 31, 2019?

b. $190,000