Parent Corp. owns 80% of Sub Corp. and uses the cost method to account for its investment, which it acquired on January 1, 2019. The Financial Statements of Parent Corp. and Sub Corp. for the Year ended December 31, 2019 are shown below (All in Canadian Dollars):

Income Statements			Retained Earnings Statements
	Parent Corp.	Sub Corp.		Parent Corp.	Sub Corp.
Sales	500,000	300,000
Other Rev	300,000	120,000	Bce 1/1/18	250,000	350,000
Cost of Sales	400,00	240,00	Net Income	180,000	78,000
Dep Exp	20,000	10,000	Dividends	30,000	38,000
Other Exp	80,000	40,000	R / E	$400,000	$390,000
Inc Tax	120,000	52,000
Net Income	$180,000	$180,000
Balance Sheets
	Parent Corp.	Sub Corp.		Parent Corp.	Sub Corp.
Cash	50,000	25,000	Current Liab	320,000	62,000
A/R	100,000	250,000	Dvd Payable	30,000	38,000
Inventory	50,000	250,000	Common Shares	100,000	110,000
Investment in Kong	500,000	-	Retained Earnings	400,000	390,000
Land	-	25,000	Total Liab & Equity	$850,000	$600,000
Equipment	400,000	200,000
Acc Dep	250,000	150,000
Total Assets	$850,000	$600,000

Other Information:

• Parent sold a tract of Land to Sub at a profit of $10,000 during 2018. This land is still the property of Sub.
• On January 1, 2019, Sub sold equipment to Parent at a price that was $20,000 higher than its book value. The equipment had a remaining useful life of 4 years from that date.
• On January 1, 2019, Parent's inventories contained items purchased from Sub for $10,000. This entire inventory was sold to outsiders during the year. Also during 2018, Parent sold Inventory to Sub for $50,000. Half this inventory is still in Sub's warehouse at year end. All sales are priced at a 25% mark-up above cost, regardless of whether the sales are internal or external.
• Sub's Retained Earnings on the date of acquisition amounted to $350,000. There have been no changes to the company's common shares account.
• Sub's book values did not differ materially from its fair values on the date of acquisition with the following exceptions:

1. Inventory had a fair value that was $20,000 higher than its book value. This inventory was sold to outsiders during 2019.
2. A Patent (which had not previously been accounted for) was identified on the acquisition date with an estimated fair value of $15,000. The patent had an estimated useful life of 3 years.
3. There was a goodwill impairment loss of $4,000 during 2019.
4. Both companies are subject to an effective tax rate of 40%.
5. Both companies use straight line amortization.

Required:

1. What is the amount of goodwill arising from this business combination 10 Marks
2. What would be the journal entry in the Parents books to record the dividends declared by Subduring the year? 2 Marks
3. What is the amount of goodwill appearing on December 31, 2018 Consolidated Statement of Financial Position would be 2 Marks
4. What is the total amount of pre-tax profit from intercompany inventory sales that was realized during 2019? 6 Marks