On Januay $1,2023,$ Bidge Road Company acoured $30$ percent of the worng shares of Sauk Trail, incorporated, for $$4,600,000$ in cash. Both companies provide commercial internet support services but serve markets in different industries. Ridge Road made the Plidge Road quichly obtained several seats on Sauk Trail's board, which giver it the ability to slignillcantly influence Souk Trail's operating and inverting activities.

The Jahuly $1,2022,$ carrying amourts and conesponding fair waloes for Seak Trails assets and liablistes follow:

$\backslash$table$[[$BAATH and LIshivities,Carrying Amount,Falf walle$],[$Cash and Kecrivables,$52$es$,$ eev,$8205,800],[$Conput$.$ing Equigenent.,$3,855,7$ee$,7,228,600],[$Patented Trehnethey,$195,000,4,379,6,600],[$Trabehrs$,345,6$ee$,2,100,600],[$Glabilitits$,(214,464),(2)(4),404)]]$

Aho, as of Jonusy $1,2003,$ Sack Trairs computing eoulpment had a sewen, gew remaining entimated whelfilly. The patiented lechnology mas estimated to have a thee$-$year remaining uselul life, The trademails atiful life mas considered indefinite. Ridge Road stributed to goodwill sery unidentified excess cost.

Burting the neut two years. Sauk Trail reported the fallewing net income and dividendtr:

$\backslash$table$[[$Tran$,$Net Incame,Stutsendt Declared$],[28\mathrm{.}23,53,798,549,5250\mathrm{.}000],[2824,2,375,6$et$,255,6$we$]]$

Bequitree:

a$.$ How much of Ridge lioads $$4,600,000$ payment for Sauk Trail in altributablie to goodul?

b$.$ What amount should Ridge Roadrepont for its equity in Sauk: Traise earings en es income starenerrts for $2023$ and $2024?$