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Pam Corporation acquired a 90 percent interest in Sun Corporation on July 1 2017 for $675000 The stockholders equity of Sun at December 31 2016 was as follows in thousands Capital stock

Pam Corporation acquired a 90 percent interest in Sun Corporation on July 1, 2017, for $675,000. The stockholders equity of Sun at December 31, 2016, was as follows (in thousands): Capital stock ..................... $500 Retained earnings ............... 200 Total .............................. $700 During 2017 and 2018, Sun reported income and declared dividends as follows: On July 1, 2018, Pam sold a 10 percent interest (or one-ninth of its investment) in Sun for $85,000. REQUIRED 1. Determine Pam s investment income for 2017 and 2018, and its investment balance on December 31, 2017 and 2018. 2. Determine noncontrolling interest share for 2017 and 2018, and the total of noncontrolling interest on December 31, 2017 and 2018.

Apr 21 2020 View more View Less

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