Part 1 and 2

Q 3-1. Pam Corporation issued 10,000 shares of their own stock to the owners of Sun to purchase 75% of the outstanding stock of Sun Corporation, on January 1,2014. At the time of issue, the \$10 par value stock had a market value of $60 per share. Any excess fair value over the identified assets and liabilities is attributed to goodwill. The following year-end information was available just after the purchase: Required: 1) Prepare journal entry on Pam's books to account for the investment in Sun at January 1,2014. 2) Prepare a schedule to assign the difference between the fair value of the investment in Sun and the book value of the interest to identifiable and unidentifiable net assets. 3) Prepare Pam's worksheet elimination journal entry at January 1, 2014, immediately after acquisition. 4) Prepare a consolidated balance sheet workpapers for Pam Corporation and Subsidiary at January 1, 2014 , immediately after acquisition