Patane Corporation acquired 80% of the outstanding voting common stock of Sanlon Corporation on January 1, 2014, for $500,000

Sanlon Corporation's stockholders' equity at this date consisted of $250,000 in Capital Stock and $100,000 in Retained Earnings. The fair value of Sanlon's assets was equal to the book value of the assets except for land with a fair value $40,000 greater than its book value, and marketable securities with a fair value $50,000 greater than its book value. Sanlon also had a valuable patent with a fair value of $25,000 and a book value of zero because its development costs were expensed as incurred. The fair value of Sanlon's liabilities is $10,000 higher than the $40,000 book value.
Required:
Calculate the amount of goodwill under the parent company and entity theories of consolidation.

Parent Company Theory:
Difference between Fair Value and Book Value
Land $40,000
Marketable securities 50,000
Patent 25,000
Liabilities (10,000)
Net difference between fair value and book value $105,000

Price paid for investment 500,000
Less: Total book value of investment
($350,000 × 80%) (280,000)
Less: Net difference between fair value and book value ($105,000 × 80%) (84,000)
Goodwill $136,000
Entity Theory:
Implied fair value of subsidiary
($500,000/0.80) $625,000
Less: Total stockholders' equity (350,000)
Less: Net difference between fair value and book value (105,000)
Goodwill $170,000