On January 1, 2020, Father Corporation exchanged $390,000 for 60% of Son Corporation. The consideration transferred by Father provided a reasonable basis for assessing the total 1/1/20, fair value of Son Corporation. Sons acquisition date balance sheet follows:

Current assets	$	15,400		Liabilities	$	233,000
Property and equipment (net)		269,400		Common stock		100,000
Patents		208,200		Retained earnings		160,000
Total Assets	$	493,000		Total Liab and SE	$	493,000

On January 1, 2020, Father assessed the carrying amount of Sons equipment (5-year remaining life) to be undervalued by $53,000. Father also determined that Son possessed an unrecorded customer base (10-year remaining life) worth $327,200. Sons acquisition-date fair values for its current assets and liabilities were equal to their carrying amounts. Any remaining excess of Sons acquisition-date fair value over its book value was attributed to goodwill.

The companies financial statements for the year ending December 31, 2021, follow:

	Father				Son
Sales	$	(617,700	)		$	(442,500	)
Cost of goods sold		313,100				207,000
Operating expenses		150,500				111,500
Equity in Son earnings		(48,408	)			0
Separate company net income	$	(202,508	)		$	(124,000	)
Retained earnings 1/1	$	(821,600	)		$	(334,300	)
Net income		(202,508	)			(124,000	)
Dividends declared		50,000				30,000
Retained earnings 12/31	$	(974,108	)		$	(428,300	)
Current assets	$	216,400			$	95,500
Investment in Son		498,996				0
Property and equipment (net)		851,000				273,000
Patents		151,800				161,500
Total assets	$	1,718,196			$	530,000
Liabilities	$	(424,088	)		$	(1,700	)
Common stockFather		(320,000	)			0
Common stockSon		0				(100,000	)
Retained earnings 12/31		(974,108	)			(428,300	)
Total liabilities and owners equity	$	(1,718,196	)		$	(530,000	)

At year-end, there were no intra-entity receivables or payables.

Required

1. Compute the amount of goodwill recognized in Fathers acquisition of Son.

2. Show how Father determined its December 31, 2021, Investment in Son account balance.