On January 1, 2020, Namar, Incorporated, paid $250,000 for a 40% interest in Sacco Corporation. This investee had assets with a book value of $650,000 and liabilities of $300,000. A patent held by Sacco having a book value of $20,000 was actually worth $80,000 with a five year remaining life. Any goodwill associated with this acquisition is considered to have an indefinite life. During 2020, Sacco reported income of $60,000 and paid dividends of $40,000 while in 2021 it reported income of $70,000 and dividends of $50,000. Assume Namar has the ability to significantly influence the operations of Sacco.

1. Compute the amount allocated to goodwill at January 1, 2020.
2. Compute the equity in income of Sacco for 2020.
3. Compute the equity in income of Sacco for 2021.
4. Compute the balance in the investment in Sacco account at December 31, 2020.
5. Compute the balance in the investment in Sacco account at December 31, 2021.