Pug Corporation acquired a 70 percent interest in Sat Corporation for $238,000 on January 2, 2015, when Sat's equity consisted of $200,000 capital stock and $50,000 retained earnings. The excess is due to a patent amortized over a 10-year period, at $9,000 per year. Pug accounted for its investment in Sat during 2015 as follows:
Investment cost January 2, 2015 ........................... $238,000
Income from Sat [($40,000 - $9,000) * 70%] ........... 21,700
Dividends from Sat ($20,000 * 70%) .................... (14,000)
Investment balance December 31, 2015 ................ $245,700
On January 3, 2016, Sat acquired a 10 percent interest in Pug at a $60,000 fair value equal to book value. No intercompany profit transactions have occurred. Incomes and dividends for 2016 were as follows:

REQUIRED
1. Determine the balance of Pug's Investment in Sat account on December 31, 2016, if the treasury stock approach is used for Sat's investment in Pug.
2. Compute controlling and noncontrolling interest shares of consolidated net income if the conventional approach is used for Sat's investment in Pug. Also determine the amount of Pug's income from Sat and the balance in Pug's Investment in Sat account at December 31, 2016.

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Pug $120,000 60,000 Sat Separate income Dividends $50,000 30,000