Pyramid Corporation paid $16,200 for a 90% interest in Steel Corporation on January 1, 2011, when Steel's stockholders' equity consisted of $10,000 Capital Stock and $3,000 of Retained Earnings. The excess cost over book value was attributable to goodwill.

Additional information:

1. Pyramid sells merchandise to Steel at 120% of Pyramid's cost. During 2011, Pyramid's sales to Steel were $4,800, of which half of the merchandise remained in Swamp's inventory at December 31, 2011. (The 2011 ending inventory was sold in 2012.) During 2012, Pyramid's sales to Steel were $6,000 of which 60% remained in Steel's inventory at December 31, 2012. At year-end 2012, Steel owed Pyramid $1,500 for the inventory purchased during 2012.

2. Pyramid Corporation sold equipment with a book value of $2,000 and a remaining useful life of four years and no salvage value to Steel Corporation on January 1, 2012 for $2,800. Straight-line depreciation is used.

3. Separate company financial statements for Pyramid Corporation and Steel at December 31, 2012 are summarized in the first two columns of the consolidation working papers.

4. The following information is available for 2011:Steel income $4,000,Steel's dividends received by Pyramid $1,800