On January $1,2023,$ Ridge Road Company acquired $20$ percent of the voting shares of Sauk Trall, Incorporated, for $$2,900,000$ in

cash. Both companles provide commerclal Internet support services but serve markets in different Industrles. Ridge Road made the

Investment to gain access to Sauk Trall's board of directors and thus facilltate future cooperative agreements between the two firms.

Ridge Road quickly obtained several seats on Sauk Trall's board, which gave it the ability to significantly Influence Sauk Trall's

operating and Investing activitles.

The January $1,2023,$ carrying amounts and corresponding falr values for Sauk Trall's assets and llabilitles follow:

Also, as of January $1,2023,$ Sauk Trall's computing equipment had a seven$-$year remalning estimated useful life. The patented

technology was estimated to have a four$-$year remaining useful life. The trademark's useful life was considered Indefinite. Ridge Road

attrlbuted to goodwill any unidentified excess cost.

During the next two years, Sauk Trall reported the following net Income and dividends:

Required:

a$.$ How much of Ridge Road's $$2,900,000$ payment for Sauk Trall is attributable to goodwill?

b$.$ What amount should Ridge Road report for Its equity In Sauk Trall's earnings on Its income statements for $2023$ and $2024?$

c$.$ What amount should Ridge Road report for Its Investment In Sauk Trall on Its balance sheets at the end of $2023$ and $2024?$

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