Jacob's Company acquired 30% of the stock of Sam's Company for $900,000 on 1/1/Year1.

On that date, Sami's balance sheet shows assets of $3,400,000 and liabilities of $1,400,000

On the date of acquisition, Sami had an unrecorded patent worth 100,000. The patent had a remaining useful life of ten years

In Year 1, Sami reported a net income of $500,000.

1. What did Jacob pay for goodwill in this acquisition?

2. What total amount does Jacob report as income from this investment in Year1?