Pop Corporation paid $1,680,000 for a 30 percent interest in Son Corporation's outstanding voting stock on January 1, 2016. The book values and fair values of Son's assets and liabilities on January 1, along with amortization data, are as follows (in thousands):

Son Corporation reported net income of $1,200,000 for 2016 and paid dividends of $600,000.
Required
1. Prepare a schedule to allocate the investment fair values/book value differentials relating to Pop's investment in Son.
2. Calculate Pop's income from Son for 2016.
3. Determine the balance of Pop's Investment in Son account at December 31, 2016?

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Book Value Fair Value Accounts receivable-net Inventories (sold in 2016) Other current assets $ 400 700 1,000 $ 400 700 1,200 1,700 2,000 500 $5,900 6,100 $800 200 1,100 Buildings-net (10-year remaining life) Equipment-net (7-year remaining life) 9 1,500 1,200 Total assets Accounts payable Other current liabilities Bonds payable (due January 1, 2021) Capital stock, $10 par Retained earnings Total equities $ 800 1,000 3,000 $5,900