3) Pennack Corporation purchased 75% of the outstanding stock of Shing Corporation on January 1, 2014 for $300,000 cash. At the time of the purchase, the book value and fair value of Shing's assets and liabilities were equal. Shing's balance sheet at the time of acquisition and December 31, 2014 are shown below. 1-Jan-14 31-Dec-14 Cash $75,000 $80,000 Other current assets 175,000 160,000 Plant Assets net 250,000 240,000 Total assets $500,000 $480,000 Liabilities $100,000 $50,000 Capital stock 100,000 100,000 Retained earnings 300,000 330,000 Total liabilities and equity $500,000 $480,000 Shing earned $60,000 in income during the year, and paid out $30,000 in dividends. Pennack uses the equity method to account for its investment in Shing.

Requirement 1: Calculate Pennack's net income from Shing in 2014.

Requirement 2: Calculate the noncontrolling interest share in Shing's income for 2014.

Requirement 3: Calculate the balance in the Investment in Shing account reported on Pennack's separate general ledger at December 31, 2014.