On January 3, 2011, Pix Corporation purchased a 90% interest in Sal Corporation at a price $120,000 in excess of book value and fair value. The excess is goodwill. During 2011, Pix sold inventory items to Sal for $100,000, and $15,000 in profit from the sale remained unrealized at year-end. Sal sold land to Pix during the year at a gain of $30,000.

ADDITIONAL INFORMATION

1. The companies are an affiliated group for tax purposes.

2. Sal declared and paid dividends of $100,000 in 2011.

3. Pix and Sal file separate income tax returns, and a 34% tax rate is applicable to both companies.

4. Pix uses a correct equity method to account for its investment in Sal.

5. Pretax accounting incomes, excluding Pix's income from Sal, are as follows (in thousands):

REQUIRED: Calculate the following:1. Sal's net income2. Pix's income from Sal3. Pix's net income

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Pix Sal Sales Gain on land Cost of sales Other expenses Pretax accounting income $ 3,815 $ 2,000 30 (1,200) (400) $ 430 (2,200) (1.000) $ 615