On January 1, 20x1, Packard Company paid $1,400,000 to acquire 30% of the outstanding common stock of Sapula, Inc. In making the investment Packard Company acquired significant influence over Sapulas operating and financing policies.

At the acquisition date, the recorded balance of Sapulas assets were $6,400,000 and they held $3,000,000 of liabilities.

For the purchase, Packard will attribute the excess of purchase price over Sapulas book value to an unrecorded patent having a remaining useful life of ten years.

Following are Sapulas recorded income and dividends declared and paid in fiscal years 20x1:

Year	Net Income	Dividend Payments
20x1	$600,000	$200,000

Required

1. Prepare the journal entry to record Packards acquisition of Sapulas common shares.
2. Prepare a schedule showing the allocation of the acquisition price.
3. Prepare the applicable journal entries for Packards investment in Sapula for fiscal year 20x1.
4. Prepare a schedule showing the transactions recorded to the Investment in Sapula account for fiscal year 20x1

Thank you so much! Oh and could you please show your calculations as well.