Question
Par Corporation paid $7,200,000 for 360,000 shares of Sun Corporation's outstanding voting common stock on January 1, 2011, when the stockholder's equity of Sun consisted
Par Corporation paid $7,200,000 for 360,000 shares of Sun Corporation's outstanding voting common stock on January 1, 2011, when the stockholder's equity of Sun consisted of (inthousands):
10% cumulative, perferred stock, $100 par. Liquidation preference is $105 per share, and 20,000 shares are issued and outstanding with one year's dividends in arrears $2,000
Common stock, $10 par, 400,000 shares issued and outstanding $4,000
Other paid in Capital $1,000
Retained Earnings $1,300
Total Stockholders' equity $8,300
During 2011, Sun reported net income of $1,000,000 and declared dividends of $800,000. Any excess of fair value over book value is goodwill, which is not amortized.
Calculate the following:
1. Goodwill from Par's acquisition of Sun
2. Par's income from Sun for 2011
3. Noncontrolling interest share for 2011
4. Noncontrolling interest in Sun at December 31, 2011
5. Par's Investment in Sun account balance at December 31, 2011
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