X. Corporation paid $220,000 cash for 40% of the voting common stock of Y. Inc. on January 1, 2019. The fair value/book value differential was assigned to inventories which is sold in 2019, equipment with a four-year remaining life and note payables that is due in 2 years (over 2 equal installments), and to goodwill for the remainder. Book value and fair value information for Y. Inc. on this date is as follows: Book Fair Values Assets Cash Values $60,000 $60,000 Accounts receivable 120,000 120,000 Inventories 80,000 100,000 Equipment 340.000 400.000 $ 600.000 $ 680,000 Liabilities & Equities Accounts payable $200,000 $200,000 120,000 100,000 Note payable Capital stock Retained earnings 200,000 80,000 $600.000 $300.000 Required: 1- Prepare an allocation schedule for X's investment in Y. Inc. at the date of acquisition. 2- If Y. Inc. reported net income of $60,000 for 2019 and paid dividend of $20,000, record all required transactions that X. Corporation will record, applying equity method? 3- What is the investment in Y. Inc. that X. Corporation will report on its balance sheet at December 31, 2019?