[Preferred stock] Subsidiary preferred stock with dividends in arrears The stockholders' equity of Sir Corporation at December 31, 2011, was as follows (in thousands): On January 1, 2010, Pod Corporation purchased 90 percent of Sir Corporation's common stock at \$90 per share. Sir's assets and liabilities were recorded at their fair values when Pod acquired its 90 percent interest. Any fair value/ book value differential is assigned to goodwill and is not amortized. During 2012, Sir reported net income of \$2,400,000 and paid dividends of $1,200,000. REQUIRED: Calculate the following: 1. The fair value/book value differential from Pod's investment in Sir. 2. Pod's income from Sir for 2012 . 3. The balance of Pod's investment in Sir at December 31, 2012. 4. Total noncontrolling interest in Sir on December 31,2012