3.5

Please, provide step by step solution.

E3-5 Disclosure of consolidated dividends subsidiary, Sun Corporation, had the following account balances related to dividends in thousands): 70 percent-owned Pam Sun Dividends for 2016 Dividends payable at December 31, 2016 $2,400 1,200 $1,600 400 REQUIRED 1. At what amount will dividends be shown in the consolidated retained earnings statement? 2. At what amount should dividends payable be shown in the consolidated balance sheet