On January 1202, Parley Company purchased 60,000 of the 80,000 outstanding common shares of Saute Corp. for $1500000. On January 1,202, Saute's shareholders' equity consisted of common shares, $420,000 and retained earnings, $712,000. The acquisition differential was allocated partly to Patent with fair value exceeding book value by $210,000 and a remaining useful life of 7 years, and the balance to goodwill. During 20x2, Saute reported net income of $320,000 and declared and paid dividends of $75,000. A goodwill impairment test indicated an impairment loss of $100,000. On January 1,203, Saute reacquired 5,000 shares at $28 per share. Parley did not participate in this transaction. During 20x3, Saute reported net income of $160000 and declared and paid dividends of $60000. On January 1, 20x4, Parley bought 6,000 of Saute shares at \$26 per share. $86,250 $142,500 $240,000 $165,000