2. On January 1, 2012, Mace Co. acquired 75% of Lance Co.'s outstanding common stock. On the same date, Lance acquired an 80% interest in Curle Co. Both of these investnents were acquired when book value was equal to fair value of identifiable net assets acquired. Both of these investments were accounted using the initial value method. No dividends were distributed by either Lance or Curle during 2012 or 2013. Mace paid cash dividends each year equal to 40% of operating income. Reported operating income totals for 2012 were as follows: $ 420,000 224,000 Mace Co. Lance Co. Curle Co. 168,000 Following are the 2013 financial statements for these three companies. Curle made numerous transfers of inventory to Lance since the takeover. $112,000 (2012) and $140,000 (2013). These transactions included the same markup applicable to Curle's outside sales. In each of these years, Lance carried 20% of this inventory into the succeeding year before disposing of it. An effective income tax rate of 45% was applicable to all companies. Mace Co. Lance Co. Curle Co. Sales 1,260.000 840,000 700,000 Cost of goods sold Operating expenses (672,000) (448,000) (364,000) (140,000) (112,000) (196,000) Net income 448,000 280,000 140.000 Retained earnings, January 1, 2013 Net income (above) Dividends paid Retained earnings. December 31. 2013 S 980.000 840,000 420.000 448,000 000 osz -0- 140,000 (179.200) -0- 1.248.800 1,120.000 560.000 Current assets Investment in Lance Co. Investment in Curle Co. Land, buildings, and equipment (net) Total assets 592,200 525,000 392,000 1,037,400 -0- -0- -0- 488,600 -0- 1,328,600 1,170,400 728,000 2,958,200 2,184,000 1,120,000 Liabilities 1,009,400 644,000 280,000 Common stock 700,000 420,000 280,000 Retained earnings, December 31, 2013 1,248,800 1,120,000 560,000 Total liabilities and stockholders' equity 2,958,200 2.184.000 1,120,000 Required: Determine the total amount of goodwill for the January 1, 2012 acquisition of Curle Co. and for the acquisition of Lance Co. on the same date. %24