The stockholders' equities of Pam Corporation and its 80 percent-owned subsidiary, Sun Corporation, on December 31, 2016,
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Pam's Investment in Sun account balance on December 31, 2016, is equal to its underlying book value. On January 2, 2017, Sun issued 60,000 previously unissued common shares directly to Pam at $25 per share.
REQUIRED
1. Calculate the balance of Pam's Investment in Sun account on January 2, 2017, after the new investment is recorded.
2. Determine the goodwill, if any, from Pam's purchase of the 60,000 new shares.
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
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Related Book For
Advanced Accounting
ISBN: 978-0134472140
13th edition
Authors: Floyd A. Beams, Joseph H. Anthony, Bruce Bettinghaus, Kenneth Smith
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