Java method overloading - Generic parameter & parameters within same inheritance tree

Let's assume I have following code:

// Method acception generic parameter
public static <T> T foo(T para) {
    return para;
}

// Method accepting Integer parameter
public static Integer foo(Integer para) {
    return para + 1;
}

// Method accepting Number parameter
public static Number foo(Number para) {
    return para.intValue() + 2;
}

public static void main(String[] args) {
    Float f = new Float(1.0f);
    Integer i = new Integer(1);
    Number n = new Integer(1);
    String s = "Test";

    Number fooedFloat = foo(f);     // Uses foo(Number para)
    Number fooedInteger = foo(i);   // Uses foo(Integer para)
    Number fooedNumber = foo(n);    // Uses foo(Number para)
    String fooedString = foo(s);    // Uses foo(T para)

    System.out.println("foo(f): " + fooedFloat);
    System.out.println("foo(i): " + fooedInteger);
    System.out.println("foo(n): " + fooedNumber);
    System.out.println("foo(s): " + fooedString);
}

The output looks the following:

foo(f): 3
foo(i): 2
foo(n): 3
foo(s): Test

Now the question(s):

1. foo(n) calls foo(Number para), most probably because n is defined as Number, even though it has an Integer assigned to it. So am I right in the assumption that the decision, which of the overloaded methods is taken happens at compile-time, without dynamic binding? (Question about static and dynamic binding)
2. foo(f) uses foo(Number para), while foo(i) uses foo(Integer para). Only foo(s) uses the generic version. So the compiler always looks if there is a non-generic implementation for the given types, and only if not it falls back to the generic version? (Question about generics)
3. Again, foo(f) uses foo(Number para), while foo(i) uses foo(Integer para). Yet, Integer i would also be a Number. So always the method with the "outer-most" type within the inheritance tree is taken? (Question about inheritance)

I know these are a lot questions, and the example is not taken from productive code, yet I just would like to know what "happens behind" and why things happen.

Also any links to the Java documentation or the Java specification are really appreciated, I could not find them myself.