E 3-5 Disclosure of consolidated dividends On December 31, 2011, the separate-company financial statements for Pan Corporation and its 70 percent-owned subsidiary, Sad Corporation, had the following account balances related to dividends (in thousands): 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? E 3-6 Prepare journal entries and balance sheet under push-down accounting Book values and fair values of Sli Corporation's assets and liabilities on December 31, 2010, are as follows (in thousands): CHAPTER 3 On January 1, 2011, Por Corporation acquires all of Sli's capital stock for $2,500,000 cash. The acquisition is recorded using push-down accounting. REQUIRED 1. Prepare the January 1 journal entry on Sli's books to record push-down values. 2. Prepare a balance sheet for Sli Corporation immediately after the acquisition on January 1 under pushdown accounting. E 4-2 Consolidated statement items with equity method Pan Corporation purchased 80 percent of the outstanding voting common stock of Sal Corporation on January 2, 2011, for $600,000 cash. Sal's balance sheets on this date and on December 31 , 2011, are as follows: ADDITIONAL INFORMATION 1. Pan uses the equity method of accounting for its investment in Sal. 2. Sal's 2011 net income and dividends were $140,000 and $120,000, respectively. 3. Sal's inventory, which was sold in 2011, was undervalued by $25,000 at January 2,2011. 24 CHAPTER 4 REQUIRED 1. What is Pan's income from Sal for 2011? 2. What is the noncontrolling interest share for 2011 ? 3. What is the total noncontrolling interest at December 31,2011 ? 4. What will be the balance of Pan's Investment in Sal account at December 31, 2011, if inves from Sal is $100,000 ? Ignore your answer to 1 . 5. What is consolidated net income for Pan Corporation and Subsidiary if Pan's net incom $360,400 ? (Assume investment income from subsidiary is $100,000, and it is included in th