Wilde Company acquired 30% of Micki, Inc., on January 1, 20X1, at a cost of $40 million. At the time, Micki’s balance sheet was as follows:

($ in millions)
Cash	$ 25
Inventory	35
Fixed assets	240
Total assets	$ 300
Total liabilities	$ 210
Common equity	90
Total liabilities and equity	$ 300

Only one of Micki’s separately identifiable assets and liabilities had a fair value different from book value—its fixed assets, whose fair value was $260 million. The fixed assets had an expected remaining economic life at the time of 15 years.

Micki reported net income of $18 million in 20X1 and paid dividends of $4 million. Ignore income taxes.

Required:

1. What is the amount of excess cost associated with Wilde’s investment in Micki as of January 1, 20X1?

2. What is the amount of income from its investment in Micki that Wilde reports in its 20X1 income statement?

3. What is the amount of investment in Micki that Wilde reports on its December 31, 20X1, balance sheet?