On January $1,2020,$ Ridge Road Company acquired $20$ percent of the voting shares of Sauk Trail, Inc., for $$3,100,000$ in cash. Both companies provide commercial Internet support services but serve markets in different industries. Ridge Road made the investment to gain access to Sauk Trail$$s board of directors and thus facilitate future cooperative agreements between the two firms. Ridge Road quickly obtained several seats on Sauk Trail$$s board, which gave it the ability to significantly influence Sauk Trail$$s operating and investing activities.

The January $1,2020,$ carrying amounts and corresponding fair values for Sauk Trail$$s assets and liabilities follow:

Carrying Amount Fair Value

Cash and receivables $ $130,000$ $ $130,000$

Computing equipment $5,180,0006,020,000$

Patented technology $120,0004,040,000$

Trademark $170,0002,040,000$

Liabilities $(205,000)(205,000)$

Also, as of January $1,2020,$ Sauk Trail$$s computing equipment had a seven$-$year remaining estimated useful life. The patented technology was estimated to have a four$-$year remaining useful life. The trademark's useful life was considered indefinite. Ridge Road attributed to goodwill any unidentified excess cost.

During the next two years, Sauk Trail reported the following net income and dividends:

Net Income Dividends Declared

$2020$ $ $1,840,000$ $ $170,000$

$20212,025,000180,000$

How much of Ridge Road$$s $$3,100,000$ payment for Sauk Trail is attributable to goodwill?

What amount should Ridge Road report for its equity in Sauk Trail$$s earnings on its income statements for $2020$ and $2021?$

What amount should Ridge Road report for its investment in Sauk Trail on its balance sheets at the end of $2020$ and $2021?$