P4-1 Calculations five years after acquisition Pam Corporation purchased 75 percent of the outstanding voting stock of Sun Corporation for $4,800,000 on January 1, 2016. Sun’s stockholders’ equity on this date consisted of the following (in thousands):

Capital stock, $10 par $2,000 Additional paid-in capital 1,200 Retained earnings December 31, 2015 1,600 Total stockholders’ equity $4,800 The excess fair value of the net assets acquired was assigned 10 percent to undervalued inventory

(sold in 2016), 40 percent to undervalued plant assets with a remaining useful life of eight years, and 50 percent to goodwill.

Comparative trial balances of Pam Corporation and Sun at December 31, 2020, are as follows

(in thousands):

Pam Sun Other assets—net $7,530 $5,200 Investment in Sun—75% 4,680 —

Expenses (including cost of sales) 6,370 1,200 Dividends 1,000 400

$19,580 $6,800 Pam Sun Capital stock, $10 par $6,000 $2,000 Additional paid-in capital 1,700 1,200 Retained earnings 3,340 1,600 Sales 8,000 2,000 Income from Sun 540 —
$19,580 $6,800 R E Q u I R E D : Determine the amounts that would appear in the consolidated financial statements of Pam Corporation and Subsidiary for each of the following items:
1. Goodwill at December 31, 2020 2. Noncontrolling interest share for 2020 3. Consolidated retained earnings at December 31, 2019 4. Consolidated retained earnings at December 31, 2020 5. Consolidated net income for 2020 6. Noncontrolling interest at December 31, 2019 7. Noncontrolling interest at December 31, 2020