The stockholders equities of Pam Corporation and its 80 percentowned subsidiary, Sun Corporation, on December 31, 2016, are as follows (in thousands):

Pam Sun Common stock, $10 par $10,000 $6,000

Retained earnings 4,000 3,000

Total Stockholders Equity $14,000 $9,000

Pams Investment in Sun account balance on December 31, 2016, is equal to its underlying book value. On January 2, 2017, Sun issued 60,000 previously unissued common shares directly to Pam at $25 per share. Required Calculate the balance of Pams Investment in Sun account on January 2, 2017, after the new investment is recorded. Determine the goodwill, if any, from Pams purchase of the 60,000 new shares.

1. Calculate the balance of Pams Investment in Sun account on January 2, 2017, after the new investment is recorded.

2. Determine the goodwill, if any, from Pams purchase of the 60,000 new shares.