Plat Corporation acquired 70% of the voting stock of Sun Corporation on January 1, 2004 for $24,500 when Sun had Capital Stock of 20,000 and Retained Earnings of $10,000.

The book values of Sun's net assets were equal to fair values, except for inventories undervalued by $500 that were sold in 2004, land undervalued by $2,000, building undervalued by 1,500 with a remaining useful life of 5 years, and the remainder to goodwill. Depreciation is calculated by the straight-line method.

BETA A docs.google.com C Advanced Management Accouting (Text, Problems & Cases) - Jawahar Lal - Googl... Course Hero Untitled document - Google Docs Untitled document * 6 Share G S File Edit View Insert Format Tools Add-ons Help All changes saved in Drive 100% Normal text Times New.. 10 BI U A GAMEEEEE EE EE X A 7 Problem #1 Plat Corporation acquired 70% of the voting stock of Sun Corporation on January 1, 2004 for $24,500 when Sun had Capital Stock of 20,000 and Retained Earnings of $10,000. The book values of Sun's net assets were equal to fair values, except for inventories undervalued by $500 that were sold in 2004, land undervalued by $2,000, building undervalued by 1,500 with a remaining useful life of 5 years, and the remainder to goodwill. Depreciation is calculated by the straight-line method. Retained Earnings of Sun for the years 2004 - 2006 was as follows: 01.01.04 31.12.04 $10,000 $11,000 01.01.05 31.12.05 $11,000 $12,500 01.01.06 31.12.06 $12,500 $13,100 Sun earned net income of $900 and declared dividends of $300 for the year 2006. Dividends receivable in the amount of $150 payable from Sun to Plat is included in Plat's net receivables. Required: Calculate the amount of Investment in Sun Co. account balance in the books of Plat Co. as of 31.12.06; 2. What amount of Income from Sun will be recognized by Plat for the year 2006? 3. Write down journal entries in the books of Plat Co. related to investment in Sun for the year 2006; 4 . Calculate the amount of Minority Interest to be shown in the consolidated statements as of 31.12.06 2 +