E 14-5 Income from subsidiary and investment account balance-translation Palo Inc. purchased 80 percent of a foreign corporation Podro Ltd for $280,000 when Pedro's fair value of net assets equal to its book value, on January 1, 2014. Common stock and retained earnings of Pedro at the date was 000,000 and 750,000 pesos respectively and the spot rate was $0.075. ,0 ADDITIONAL INFORMATION 1. On december 31, 2014 the exchange rate was $0.06 and the average exchange rate was $0.07. 2. During 2014, Pedro reported net income of 400.000 pesos and paid a dividend of 150,000 pesos on Decem- ber 15, 2014 when the exchange rate was $0.065. 3. Assume that accumulated other comprehensive income was calculated at $8,400 REQUIRED 1. Calculate goodwill. 2. Calcula:e the income from Pedro. 3. Calculate ending balance of investment to Pedro. E 14-5 Income from subsidiary and investment account balance-translation Palo Inc. purchased 80 percent of a foreign corporation Podro Ltd for $280,000 when Pedro's fair value of net assets equal to its book value, on January 1, 2014. Common stock and retained earnings of Pedro at the date was 000,000 and 750,000 pesos respectively and the spot rate was $0.075. ,0 ADDITIONAL INFORMATION 1. On december 31, 2014 the exchange rate was $0.06 and the average exchange rate was $0.07. 2. During 2014, Pedro reported net income of 400.000 pesos and paid a dividend of 150,000 pesos on Decem- ber 15, 2014 when the exchange rate was $0.065. 3. Assume that accumulated other comprehensive income was calculated at $8,400 REQUIRED 1. Calculate goodwill. 2. Calcula:e the income from Pedro. 3. Calculate ending balance of investment to Pedro