3. Pat Corporation acquired an 80 percent interest in Sal Corporation on January 1, 2011, and issued consolidated financial statements at and for the year ended December 31, 2011. Pat and Sal had issued separate-company financial statements in 2010* (2 Points) The change in reporting entity is reported by restating the financial statements of all prior periods presented as consolidated statements. The cumulative effect of the change in reporting entity is shown in a separate category of the income statement net of tax. The income effect of the error is charged or credited directly to beginning retained earnings. The income effect of the accounting change is spread over the current and future periods 4. Par purchased 10 percent of Tot Company's 100,000 shares of common stock on January 2 for $100,000. On December 31, Par purchased an additional 20,000 shares of Tot for $300,000. There was no goodwill as a result of either acquisition, and Tot had not issued any additional stock during the year. Tot reported earnings of $600,000 for the year. What amount should Par report in its December 31 balance sheet as investment in Tot? (2 Points)