Rain Corp paid $1,680,000 for a 30% interest in Train Co' outstanding voting stock on January 1,2011. The book value and fair value Train's assets and liabilities on January 1, along with amortization data, are as follows (in thousands): Book Value Fair Value Cash $400 $400 Account receivable-net 700 700 Inventories (sold in 2011) 1,000 1,200 Other current assets 200 200 Land 900 1,700 Building-net (10 y remaining life) 1,500 Equipment-net (17 y remaining life) 1.200 500 Total assets $5.900 $6.700 2,000 900 Accounts Payable $800 $800 Other current liabilities 200 200 Bonds payable (due January 1,2016) 1,000 1,100 Capital stock, $10 par 3,000 Retained earnings Total equities . $5.900 Required: (40%) 1. Prepare a schedule to allocate the investment fair value/book value differentials related above 2. Calculate Rain's income from Train Co for 2011. 3. Determine the balance of Rain's Investment in Train account at December 31,2011