The consolidated balance sheet of Pam Corporation and its 80 percent subsidiary, Sun Corporation, contains the following
Question:
Cash .............................................. $ 160
Inventories ....................................... 1,536
Other current assets ............................... 560
Plant assets-net ............................... 2,160
Goodwill ........................................... 480
................................................... $4,896
Liabilities ........................................$ 960
Capital stock .................................... 3,200
Retained earnings ................................ 240
Non-controlling interests ....................... 496
.................................................. $4,896
Pam Corporation uses the equity method of accounting for its investment in Sun. Sun Corporation stock was acquired by Pam on January 1, 2016, when Sun's capital stock was $1,600,000 and its retained earnings were $160,000. Fair values of Sun's net assets were equal to book values on January 1, 2016, and there have been no changes in outstanding stock of either Pam or Sun since January 1, 2016.
Required
Determine the following:
1. The purchase price of Pam's investment in Sun stock on January 1, 2016.
2. The total of Sun's stockholders' equity on December 31, 2020.
3. The balance of Pam's Investment in Sun account at December 31, 2020.
4. The balances of Pam's Retained earnings and Capital stock accounts on December 31, 2020?
Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
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Related Book For 
Advanced Accounting
ISBN: 978-0134472140
13th edition
Authors: Floyd A. Beams, Joseph H. Anthony, Bruce Bettinghaus, Kenneth Smith
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