Parrot Company obtains some of the outstanding common stock of Sun Company on January 1, 2014. Parrot acquires Sun 30% ownership interest for $250,000 in cash. Sun Companys balances are shown below:

Book Values Fair Values

1/1/14 1/1/14

Current assets . . . . . . . . . . . . . . . . . . $320,000 $ 320,000

Trademarks (indefinite life) . . . . . . . . 200,000 220,000

Patented technology (10-year life) . . . 320,000 450,000

Equipment (5-year life) . . . . . . . . . . . 180,000 150,000

Liabilities . . . . . . . . . . . . . . . . . . . . . . .(420,000) (420,000)

Common stock$40 par value . . . .$(200,000)

Additional paid-in capital . . . . . . . . .. (20,000)

Retained earnings, 1/1/14 . . . . . . . . . .(380,000)

For 2014, Sun earned $90,000, declared cash dividends of $60,000, and paid dividends of $40,000.

Required:

1Whats realized Goodwill for this acquisition? Whats recognized amount for this Goodwill?

2Whats amount of Investment-Sun on Parrots 2014 Financial Statements? Prepare all related journal entries.