I need the answer by showing explanation on T account. The 2014 earnings is $120.

Pat Corporation purchased 40 percent of the voting stock of Sue Corporation on July 1, 2011, for $300,000. On that date, Sues stockholders equity consisted of capital stock of $500,000, retained earnings of $150,000, and current earnings (just half of 2011) of $50,000. Income is earned proportionately throughout each year. The Investment in Sue account of Pat Corporation and the retained earnings account of Sue Corporation for 2011 through 2014 are summarized as follows (in thousands):

REQUIRED 1. Determine the correct amount of the investment in Sue that should appear in Pats December 31, 2014, balance sheet. Assume any difference between investment cost and book value acquired is due to a building with a 10-year remaining life. 2. Prepare any journal entry (entries) on Pats books to bring the Investment in Sue account up to date on December 31, 2014, assuming that the books have not been closed at year-end2014.

RETAINED EARNINGS (SUE) Dividends November 1, 2011 $40 Balance January I, 2011 $150 40 Earnings 2011 100 Dividends November 1, 2012 Dividends November 1, 2013 50 Earnings 2012 80 130 Dividends November 1, 2014 50 Earnings 2013 INVESTMENT IN SUE (PAT) $16 Investment July 1, 2011 40% Income 2011 $300 Dividends 2011 40 Dividends 2012 16 Income 2012 20 32 Dividends 2013 Income 2013 52 Dividends 2014 20 48 Income 2014