Question $1$

A$-$On January $1,2022,$ Panorama Corporation acquired a $75$ percent interest in Scan Corporation for $$1,800,000,$ when Scan's equity consisted of $$900,000$ capital stock and $$300,000$ retained earnings. The fair values of Scan's assets and liabilities were equal to book values on this date. Panorama uses the equity method of accounting for Scan.

During $2022,$ Scan sold inventory items to Panorama for $$480,000,$ and at December $31,2022,$ Panorama's inventory included items on which there were $$60,000$ unrealized profits. During $2023,$ Scan sold inventory items to Panorama for $$780,000,$ and at December $31,2023,$ Panorama's inventory included items on which there were $$120,000$ unrealized profits.

The financial statements of Panorama and Scan Corporations at and for the year ended December $31,2023,$ are summarized as follows $($in thousands$)$:

$\backslash$table$[[,$Panorama,Scan$],[\backslash$table$[[$INCOME STATEMENT$],[$Sales$]],$$$3,600,$$$2,400$