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Sam Corporation purchased 75% of the outstanding voting stock of Maine Corporation for $2,400,000 on January 1, 2011. On this date Maines shareholders equity consisted

Sam Corporation purchased 75% of the outstanding voting stock of Maine Corporation for $2,400,000 on January 1, 2011. On this date Maines shareholders equity consisted of the following (in thousands):

Common stock, $10 par

$1,000

APIC

600

Retained Earnings

800

Total SE

$2,400

The excess fair value of the net assets acquired was assigned 10% to undervalued inventory (sold in 2011), 40% to undervalued plant assets with a remaining useful life of eight years, and 50% to goodwill.

Comparative trial balances of Sam Corporation and Maine Corporation at December 31, 2015, are as follows (in thousands):

Sam

Maine

Other assets - net

3,765

2,600

Investment in Maine

2,340

-

Expenses (including cost of sales)

3,185

600

Dividends

500

200

9,790

3,400

Common Stock, $10 par value

3,000

1,000

APIC

850

600

Retained earnings

1,670

800

Sales revenues

4,000

1,000

Income from Maine

270

-

9,790

3,400

Required:

Determine the amounts that would appear in the consolidated financial statements of Sam Corporation and Subsidiary for each of the following items:

Goodwill at December 31, 2015. (2 points)

Income in Non-controlling interest for 2015. (3 points)

Consolidated retained earnings at December 31, 2014. (2 points)

Consolidated retained earnings at December 31, 2015. (2 points)

Controlling share of consolidated net income for 2015. (3 points)

Non-controlling interest at December 31, 2014. (3 points)

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