CASE 1: GOODWILL Pam Corporation pays $400,000 cash and issues 50,000 shares of Pam Corporation $10...

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CASE 1: GOODWILL Pam Corporation pays $400,000 cash and issues 50,000 shares of Pam Corporation $10 par common stock with a market value of $20 per share for the net assets of Sun Company. The following entries record the acquisition on the books of Pam Corporation on December 27, 2016 (in thousands). Investment in Sun Company (+A) Cash (-A) Common stock, $10 par (+SE) Additional paid-in capital (+SE) To record issuance of 50,000 shares of $10 par common stock plus $400,000 cash in a business combination with Sun Company. Cash (+A) Net receivables (+A) Inventories (+A) Land (+A) Buildings (+A) Equipment (+A) Patents (+A) Goodwill (+A) Accounts payable (+L) Notes payable (+L) Other liabilities (+L) Investment in Sun Company (A To assign the cost of Sun Company to identifiable assets 1,400 400 500 500 50 140 250 100 500 350 50 200 60 135 45 1,400 acquired and liabilities assumed on the basis of their fair values and to goodwill. We assign the amounts to the assets and liabilities based on fair values, except for goodwill. We determine goodwill by subtracting the $1,200,000 fair value of identifiable net assets acquired from the $1,400,000 purchase price for Sun Company's net assets. Busine CASE 1: GOODWILL Pam Corporation pays $400,000 cash and issues 50,000 shares of Pam Corporation $10 par common stock with a market value of $20 per share for the net assets of Sun Company. The following entries record the acquisition on the books of Pam Corporation on December 27, 2016 (in thousands). Investment in Sun Company (+A) Cash (-A) Common stock, $10 par (+SE) Additional paid-in capital (+SE) To record issuance of 50,000 shares of $10 par common stock plus $400,000 cash in a business combination with Sun Company. Cash (+A) Net receivables (+A) Inventories (+A) Land (+A) Buildings (+A) Equipment (+A) Patents (+A) Goodwill (+A) Accounts payable (+L) Notes payable (+L) Other liabilities (+L) Investment in Sun Company (A To assign the cost of Sun Company to identifiable assets 1,400 400 500 500 50 140 250 100 500 350 50 200 60 135 45 1,400 acquired and liabilities assumed on the basis of their fair values and to goodwill. We assign the amounts to the assets and liabilities based on fair values, except for goodwill. We determine goodwill by subtracting the $1,200,000 fair value of identifiable net assets acquired from the $1,400,000 purchase price for Sun Company's net assets. Busine