On January 1, Pathan Corp. purchased 80% of Samoa Corp.s $10 par common stock for $975,000. Pathan had no prior equity interest in Samoa. The remaining 20% of this stock is held by NCI Co., an unrelated party. On the acquisition date for this business combination, the carrying amount of Samoas net assets was $1 million. The fair values of the assets acquired and liabilities assumed were the same as their carrying amounts on Samoas balance sheet except for plant assets (net), the fair value of which was $100,000 in excess of the carrying amount. The fair value of the noncontrolling interest (NCI) is 20% of the implied fair value of the acquirees net assets at the acquisition date. (No exceptions to the recognition or measurement principles apply.) For the year ended December 31, Samoa had net income of $190,000 and paid cash dividends totaling $125,000.

Assume the full equity method

A.How much was the equity income recognized by pathan Corp during year 1?

B.What is the amount of change in the balence of the equity investment account during year 11?

C.How much was the amount of NCI on january 1, year 11?

D. Considering the operating results of Samoa during year 11, is the amount of dividend paid in year 11 reasonable or feasible?