Comparative income statements of Stu Corporation for the calendar years 2011, 2012, and 2013 are as follows (in thousands):

ADDITIONAL INFORMATION
1. Stu was a 75 percent-owned subsidiary of Pit Corporation throughout the 2011-2013 period. Pit's separate income (excludes income from Stu) was $10,800,000, $10,200,000, and $12,000,000 in 2011, 2012, and 2013, respectively. Pit acquired its interest in Stu at its underlying book value, which was equal to fair value on July 1, 2010.
2. Pit sold inventory items to Stu during 2011 at a gross profit to Pit of $1,200,000. Half the merchandise remained in Stu's inventory at December 31, 2011. Total sales by Pit to Stu in 2011 were $3,000,000. The remaining merchandise was sold by Stu in 2012.
3. Pit's inventory at December 31, 2012, included items acquired from Stu on which Stu made a profit of $600,000. Total sales by Stu to Pit during 2012 were $2,400,000.
4. There were no unrealized profits in the December 31, 2013, inventories of either Stu or Pit.
5. Pit uses the equity method of accounting for its investment in Stu.
REQUIRED
1. Prepare a schedule showing Pit's income from Stu for the years 2011, 2012, and 2013.
2. Compute Pit's net income for the years 2011, 2012, and 2013.
3. Prepare a schedule of consolidated net income for Pit Corporation and Subsidiary for the years 2011, 2012, and 2013, beginning with the separate incomes of the two affiliates and including noncontrolling interest computations.

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2011 2012 2013 $24,000 12,600 11,400 9,000 $25,500 13.200 12,300 G0 $ 2,700 $28,500 15,000 30 11,400 $ 2,100 Sales Cast ofss Gross profit Operating expenses Net income