Pam Company paid $440,000 for an 80 percent interest in Sun Company on July 1, 2016, when
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Give the entries to record these facts on the books of Pam Company:
1. Assuming that Pam Company uses the cost method of accounting for its subsidiaries.
2. Assuming that Pam Company uses the equity method of accounting for its subsidiaries. (Any difference between investment cost and book value acquired is to be assigned to equipment and amortized over a 10-year period.)
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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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