Pam Corporation acquired a 90 percent interest in Sun Corporation on July 1, 2017, for $675,000. The
Question:
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.
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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