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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 2.000 Income from Sun 540 $19.521 26.800

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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 2.000 Income from Sun 540 $19.521 26.800 REQUIRED : 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 P4-2 Workpaper in year of acquisition Liam AB acquired an 80 percent ownership in Theo AB on January 1, 2014, for $10mn, when Theo AB's stockholders' equity consisted of $2,000,000 capital stock and $8,000,000 retained carnings. Theo AB's assets and liabilities were at book value equal to the fair value at the time. Separate financial statements of Liam AB and Theo AB at December 31, 2014, are as follows (in thousands): Liam AB Theo AB Combined Income and Retained Earnings Statements for the Year Ended December 31 sales $67.000 $30.500 Income from Theo AB 1.200 Cost of sales (42.0 00) (25.000) Expenses (21.900) (4,010) Net income 4.300 1.500 Add: Beginning retained January 1 11,600 8,000 Deduct: Dividends (3,010) (500) Retained earnings December 31 $12,900 $ 9.000 Balance Sheet at December 31 Cash 800 600 Accounts receivable-net 800 Dividends receivable 410 Inventories 2.600 400 Other current assets 1.200 1.800 Land 3,000 4.200 Buildings-net 3.200 3.600 Equipment-net 2.200 2.400 Investment in Theo AB 10.800 Total Assets $25.500 $13.800 Accounts payable $1.000 400 Dividends payable 2,500 500 Noles payable 4,100 1,900 Capital Stock, $10 par 5,000 2,000 Retained earnings 12,900 9.000 Total liabilities and equities $25.500 $13.800 No dividends declared by Theo AB during the year were paid. REQUIRED: Prepare consolidation workpapers for Liam AB and Subsidiary for the year ended December 31, 2014

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