Prepare an allocation schedule, compute income and the investment balance Quake Corporation paid $1,680,000 for a 30 percent interest in Tremor Corporation's outstanding voting stock on January 1, 2011. The book values and fair values of Tremor's assets and liabilities on January 1, along with amortization data, are as follows (in thousands): Book Value Fair Value Cash Accounts receivable-net Inventories (sold in 2011) Other current assets Land Buildings-net (10-year remaining life) Equipment-net (7-year remaining life) Total assets Accounts payable Other current liabilities Bonds payable (due January 1, 2016) Capital stock, $10 par Retained earnings Total equities NI $ 400 700 $ 400 700 1,000 1,200 200 200 900 1,700 1,500 2,000- 1,200 500 $5,900 $6,700 $ 800- $ 800 200 200 1,000.. 1,100 3,000 900 $5,900 Tremor Corporation reported net income of $1,200,000 for 2011 and paid dividends of $600,000. REQUIRED 1. Prepare a schedule to allocate the investment fair values/book value differentials relating to Quake's investment in Tremor. 2. Calculate Quake's income from Tremor for 2011. 3. Determine the balance of Quake's Investment in Tremor account at December 31, 2011