Patrick Company acquired 60% of Sandy Company for $528,000 on January 1, 2021. Sandy reported a book value of stockholder’s equity of $690,000 (including common stock of $420,000 and retained earnings of $270,000) on that date. Fair value of the 40% noncontrolling interest on the acquisition date was $300,000. On the acquisition date, a patent was undervalued by $30,000 (10-year remaining life) and a machine was overvalued by $8,000 (5-year remaining life). Any excess consideration transferred over fair value was attributed to goodwill with an indefinite life. In 2021, Sandy earned net income of $240,000 and paid dividends of $60,000.    

Requirements:

1. 1. Calculate the goodwill that is assigned to controlling (CI) and noncontrolling interest (NCI)

2. 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.

3. How much net income of Sandy was attributable to the noncontrolling interest in 2021 under the equity method?