P8-5 Subsidiary issues additional shares Pam Corporation purchased 9,000 shares of Sun Corporation’s $50 par common stock at $90 per share on January 1, 2016, when Sun had capital stock of $500,000 and retained earnings of $300,000. During 2016, Sun Corporation had net income of $50,000 but declared no dividends.

On January 1, 2017, Sun Corporation sold an additional 5,000 shares of stock at $100 per share.

Sun’s net income for 2017 was $70,000, and no dividends were declared.

REQuIRED: Determine each of the following:

1. The balance of Pam Corporation’s Investment in Sun account on December 31, 2016 2. The goodwill that should appear in the consolidated balance sheet at December 31, 2017, assuming that Pam Corporation purchased the 5,000 shares issued on January 1, 2017 3. Additional paid-in capital from consolidation at December 31, 2017, assuming that Sun sold the 5,000 shares issued on January 1, 2017, to outside entities 4. Noncontrolling interest at December 31, 2017, assuming that Sun sold the 5,000 shares issued on January 1, 2017, to outsiders Consolidations—Changes in Ownership Interests 295