A summary of changes in Pam Corporation's Investment in Sun account from January 1, 2016, to December
Question:
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Additional Information
1. Pam acquired its 80 percent interest in Sun Corporation when Sun had capital stock of $4,800,000 and retained earnings of $2,400,000.
2. Dividends declared by Sun Corporation in each of the years 2016, 2017, and 2018 were equal to 50 percent of Sun Corporation's reported net income.
3. Sun Corporation's assets and liabilities were stated at fair values equal to book values on January 1, 2016.
Required
Compute the following amounts:
1. Sun Corporation's dividends declared in 2017
2. Sun Corporation's net income for 2017
3. Goodwill at December 31, 2017
4. Non-controlling interest share for 2018
5. Non-controlling interest at December 31, 2018
6. Consolidated net income for 2018, assuming that Pam's separate income for 2018 is $2,240,000, without investment income from Sun.
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Step by Step Answer:
Preliminary computations in thousands 80 Investment in Sun at cost January 1 2016 6080 Implied total ...View the full answer
Advanced Accounting
ISBN: 978-0134472140
13th edition
Authors: Floyd A. Beams, Joseph H. Anthony, Bruce Bettinghaus, Kenneth Smith
