Pla purchased a 40 percent interest in Sor, a foreign company, on January 1, 2016, for $342,000, when Sor's stockholders' equity consisted of 3,000,000 LCU capital stock and 1,000,000 LCU retained earnings.

Sor's functional currency is its local currency unit. The exchange rate at this time was $0.15 per LCU. Any excess allocated to patents is to be amortized over 10 years. A summary of changes in the stockholders' equity of Sor during 2016 (including relevant exchange rates) is as follows:

REQUIRED:
Determine the following:
1. Excess patent from Pla's Investment in Sor on January 1, 2016
2. Excess patent amortization for 2016
3. Unamortized excess patent at December 31, 2016
4. Equity adjustment from patents for 2016
5. Income from Sor for 2016
6. Investment in Sor balance at December 31, 2016

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Exchange Rate $0.15 H 0.14 A 0.14 A LCUs Stockholders' equity January 1, 2016 Net income Dividends Equity adjustment Stockholders' equity December 31, 2016 U.S. Dollars $600,000 112,000 (56,000) (84,000) $572,000 4,000,000 800,000 (400,000) 4,400,000 0.13 C