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Problem I (32 points) The following information shaw On January 1, 2022, Fan Company paid $108,000 to acquire 60% of Sung Company's outstanding common stock.

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Problem I (32 points) The following information shaw On January 1, 2022, Fan Company paid $108,000 to acquire 60% of Sung Company's outstanding common stock. There is no control premium and the fair value of the noncontrolling interest was $72,000 on January 1,2022 . Sung continues its corporate existence as a subsidiary of Pan Company. Pan uses the complete equity method to account for its investment in Sung. The remaining useful life of the building was six years with no salvage value. Sung uses straight line depreciation. During 2022, Sung had a net income of $23,000. Sung's cost of goods sold (FIFO) was $85,000 in 2022 . The goodwill was not impaired. On December 23, 2022, Sung declared and paid $8,000 cash dividend to its shareholders. Prepare working paper eliminating entries C,E,R,O and N (in journal entry format) for Pan Company and subsidiary for the year ended December 31,2022. Problem I (32 points) The following information shaw On January 1, 2022, Fan Company paid $108,000 to acquire 60% of Sung Company's outstanding common stock. There is no control premium and the fair value of the noncontrolling interest was $72,000 on January 1,2022 . Sung continues its corporate existence as a subsidiary of Pan Company. Pan uses the complete equity method to account for its investment in Sung. The remaining useful life of the building was six years with no salvage value. Sung uses straight line depreciation. During 2022, Sung had a net income of $23,000. Sung's cost of goods sold (FIFO) was $85,000 in 2022 . The goodwill was not impaired. On December 23, 2022, Sung declared and paid $8,000 cash dividend to its shareholders. Prepare working paper eliminating entries C,E,R,O and N (in journal entry format) for Pan Company and subsidiary for the year ended December 31,2022

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