Peter paid cash of $2,000,000 and issued 50,000 shares of its own $5 par value stock with a market value of $10 for 30% interest in Sol Company's outstanding voting stock on January 1, 2013. The book and fair values including amortization data are available as follows for Sol Company (in thousands).

                                       Book Value          Fair Value

Cash                                 $3500                   $3500

Receivables (net)               4000                     4000

Inventory                             600                      800

Other current Assets           900                      780

Land

Equipment (net) (10 yrs.)    1000                     1600

Total Assets                      $10,000                 $10,680

Accounts Payable               $3600                    $3600

Note Payable                       4000                      3800

Common Stock                    2000

Retained Earnings               400

Total L & SE                       $10,000

Sol Company Realized $800,000 of net income and distributed dividends of $600,000 for the year of 2013.

Required:

1) Show the journal entry to record the investment and prepare an allocation schedule for investment fair/book differences for Peter's investment in Sol Company.

2) What is Peter's income from Sol? (Show calculations)

3) What is the balance in Peter's investment account at the end of 2013? (show calculations)

4) Journalize the entries to account for Peter's investment in Sol Company during 2013.