On January 1st of 2020 Pink, Inc. acquired 100% of Salmon Corp. On the acquisition date Salmon Corp. had equity accounts of:

Common Stock ($10 par) $310,000

Additional Paid-in Capital 90,000

Retained Earnings 500,000

During the year 2020, both companies maintained separate financial statements but on December 31, 2020 Pink, Inc., the parent of Salmon Corp., prepared consolidated financial statements for its stockholders. Pink, Inc. used the equity method to account for its investment in Salmon Corp.

During the year Pink, Inc. (the parent) reported net income earnings of $1,300,000 and paid dividends of $400,000 to its outside stockholders. Salmon Corp. reported net income earnings of $500,000 and paid dividends to Pink, Inc. in the amount of $120,000.

When Pink, Inc. acquired Salmon Corp., it paid $100,000 more than the book value of a patent that was on Salmon Corp.s books. This patent had an estimated 10-year useful life remaining as of January 1, 2020. Pink, Inc. also paid $100,000 over and above Salmon Corp.s fair value to Salmon stockholders in order to acquire 100% of Salmon Corp (Goodwill).

Required:

1) Determine the original acquisition price that Pink, Inc. paid for Salmon Corp. on January 1, 2020.

2) Calculate the amount in the Investment in Sub account on Pink Inc.s books at December 31, 2020, before consolidation.