Question 5: Equity accounting (10 marks) P. acquired 40% of the equity securities of A Co. on Jan 1, 20X1 for $1,100,000 to exert significant influence over the company. P. also paid $100,000 of professional fees for the acquisition. All the identifiable assets and liabilities of A. Co. at the time of acquisition were recorded at fair value at $2,000,000 except for the following: The PP\&E has a remaining 5-years of useful life. A. Co. depreciates the PP\&E using the straight-line method. 60% of the inventory held by the A. Co. at the time of the acquisition by P. with the fair value adjustment was sold during the year. During the year, A. Co. reported a net income of $300,000, and declared cash dividend in total of $100,000 to its sharcholders in the year. Required: Determine tho following: 1) The implied goodwill included in the investment paid; 2) The ending balance of the investment account in the associate A. on Dec 31,20X1