E 8-10 Computations for sale of an interest Pam Corporation acquired a 90 percent interest in Sun Corporation on July 1, 2017, for $675,000. The stockholders’

equity of Sun at December 31, 2016, was as follows (in thousands):

Consolidations—Changes in Ownership Interests 291 Capital stock $500 Retained earnings 200 Total $700 During 2017 and 2018, Sun reported income and declared dividends as follows:

2017 2018 Net income $100,000 $80,000 Dividends (December) 50,000 30,000 On July 1, 2018, Pam sold a 10 percent interest (or one-ninth of its investment) in Sun for $85,000.

REQuIRED 1. Determine Pam’s investment income for 2017 and 2018, and its investment balance on December 31, 2017 and 2018.

2. Determine noncontrolling interest share for 2017 and 2018, and the total of noncontrolling interest on December 31, 2017 and 2018.