E 10-5 [Preferred stock] Parent owns both common and preferred stock of subsidiary

The stockholders equity of Dhocerneye Corporation on December 31, 2016, was as follows (in thousands):

10% preferred stock. $100 par, cumulative, nonparticipacing, with one years dividends in arrears

Common stock, $10 par Other paid-in capital Retained earnings

Total stockholders equity

$1,000 2,000 250 850 $4,100

On January 1, 2017, Roditeli Corporation acquired 60 percent of Dhocerneyes preferred stock for $500,000 and 90 percent of its common stock for $3,000,000. In 2017, Dhocerneye reported net income of $500,000 and paid dividends of $150,000 in 2016.

REQuIRED:

Calculate the following:

1. The value of preferred stock from Roditelis investment in Dhocerneye

2. Goodwill from Roditelis acquisition

3. Roditelis income from Dhoceryene for 2017, both common and preferred

4. Total noncontrolling interest in Dhoceryene that will appear on Roditeli and Subsidiarys balance sheet at December 31, 2017