Maxwell Inc. acquired 20% of the common stock of Magic Inc. on January 1, 2020.Maxwell paid cash of $2,700,000 for this investment which gave them significant influence over Magic.The following book values and fair values for Magic on that date are available:

Book ValueFair Value

Cash and Receivables$110,000$110,000

Equipment5,000,0005,700,000

Patents100,0004,000,000

Trademark150,0002,000,000

Liabilities(185,000)(185,000)

The remaining useful life for these assets are:

Equipment:7 years

Patents: 3 years

Trademark: indefinite

Any unidentified excess cost is attributed to Goodwill.During the next two years Magic reported income of $1,800,000 for 2020 and $1,985,000 for 2021 and paid dividends of $150,000 for 2020 and $160,000 for 2021.

1) What amount of goodwill is attributable to this purchase?

2) What amount should Maxwell report for its equity in Magic's earnings on its income statement for 2020?

3) What amount should Maxwell report for its investment in Magic on its balance sheet at December 31, 2021?