Pam Corporation 's Investment in Sun Company account had a balance of $475,000 at December 31, 2016 This balance consisted of goodwill of $35,000 and 80 percent of Sun 's $550,000 stockholders ' equity On January 2, 2017, Sun increased its outstanding shares from 10,000 to 12,000 shares by selling ...

Preliminary computations Cost of additional investment 2 ...

Pam Corporation's Investment in Sun Company account had a balance of $475,000 at December 31, 2016. This

Question:

Pam Corporation's Investment in Sun Company account had a balance of $475,000 at December 31, 2016. This balance consisted of of $35,000 and 80 percent of Sun's $550,000 stockholders' equity.
On January 2, 2017, Sun increased its outstanding shares from 10,000 to 12,000 shares by selling 2,000 additional shares directly to Pam at $80 per share. Sun's net income for 2017 was $90,000, and in December 2017 it paid $60,000 dividends.
REQUIRED:
Prepare all journal entries other than closing entries to account for Pam's investment in Sun during 2017. Any difference between fair value and book value is .
Goodwill
Goodwill is an important concept and terminology in accounting which means good reputation. The word goodwill is used at various places in accounting but it is recognized only at the time of a business combination. There are generally two types of...