E 3-4 Correction of consolidated net income Pin Corporation paid $3,600,000 for a 90 percent interest in San Corporation on January 1, 2011; San's total book value was $3,600,000. The excess was allocated as follows: $120,000 to undervalued equipment with a three-year remaining useful life and $280,000 to goodwill. The income statements of Pin and San for 2011 are summarized as follows (in thousands): San $3,200 Sales Income from San Cost of sales Depreciation expense Other expenses Net income Pin $8,000 360 (4,000) (800) (1,600) $ 1,960 (1,600) (480) (720) $ 400 REQUIRED 1. Calculate the goodwill that should appear in the consolidated balance sheet of Pin and Subsidiary at December 31, 2011. 2. Calculate consolidated net income for 2011