The stockholders' equity of Sun Corporation at December 31, 2016, was as follows (in thousands):
10% cumulative preferred stock, $100 par, callable at $105, ................ $2,000
20,000 shares issued and outstanding, with one year's dividends in arrears
Common stock, $10 par, 200,000 shares issued and outstanding ............ 2,000
Additional paid-in capital ......................................................... 4,000
Retained earnings ................................................................... 8,000
Total stockholders' equity .......................................................... $16,000
On January 1, 2017, Pam Corporation purchased 90 percent of Sun Corporation's common stock at $90 per share.
Sun's assets and liabilities were recorded at their fair values when Pam acquired its 90 percent interest. Any fair value/book value differential is assigned to goodwill and is not amortized. During 2017, Sun Corporation 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 Pam's investment in Sun.
2. Pam's income from Sun for 2017.
3. The balance of Pam's investment in Sun at December 31, 2017.
4. Total noncontrolling interest in Sun Corporation on December 31, 2017.