On January 1, 2009, Pam Corporation acquired 60 percent of the voting common shares of Sun Corporation at an excess of fair value over book value of $1,000,000. This excess was attributed to plant assets with a remaining useful life of five years. For the year ended December 31, 2016, Sun prepared condensed financial statements as follows (in thousands): Condensed Balance Sheet at December 31, 2016 Current assets (except inventory) $ 600 Inventories 300 Plant assets-net 5,000 Total assets $ 5,900 Liabilities $ 400 Capital stock 3,400 Retained earnings 2,100 Total equities $5,900 Condensed Statement of Income and Retained Earnings Sales $1,000 Cost of sales (500) Other expenses (300) Net income 200 Add: Retained earnings January 1, 2016 2,000 Less: Dividends _(100) Retained earnings December 31, 2016 $ 1,900 Sun regularly sells inventory items to Pam at a price of 120 percent of cost. In 2015 and 2016, sales from Sun to Pam are as follows: 2015 2016 Sales at selling price $840 $960 Inventory unsold by Pam on December 31 120 360 1. Under the equity method, Pam reports investment income from Sun for 2016 of: a. $120 b. $96 c. $80 d. $104 loss 2. Noncontrolling interest on December 31, 2016, is: a. $2,200 b. $2,184 c. $2,176 d. $2,140 3. On the books of Pam Corporation, the investment account is properly reflected on December 31, 2016, at: a. $3,240 b. $3,264 c. $3,276 d. Not enough information is given