Palace Company acquired 60% of Sage Company for $ 564,000 on January 1, 2021. Sage reported a book value of stockholder's equity of $ 700,000 (including common stock of $460,000 and retained earnings of $240,000) on that date. Fair value of the 40% noncontrolling interest on the acquisition date was $ 300,000. On the acquisition date, a machine was undervalued by $ 40,000 (10-year remaining life) and a copyright was overvalued by $ 6,000 (5-year remaining life). Any excess consideration transferred over fair value was attributed to goodwill with an indefinite life. In 2021, Sage earned net income of $240,000 and paid dividends of $30,000. Requirements: a. Calculate the goodwill that is assigned to controlling (CI) and noncontrolling interest (NCI). Answer: To Cl: : To NCI: b. Calculate the investment related income that the parent company would report for 2021 using each of the three methods (1) equity method; (2) initial value method; (3) partial equity method. Answer: (1): :(2): :(3): c. How much net income of Sage was attributable to the noncontrolling interest in 2021 under the equity method? Answer: