1. Pam Corporation owns a 70 percent interest in Sun Corporation, acquired several years ago at book value. On December...
Use the following information in answering questions 2 and 3.
Pam Corporation purchased a 70 percent interest in Sun Corporation on January 1, 2016, for $112,000, when Sun's stockholders' equity consisted of $24,000 common stock, $80,000 additional paid-in capital, and $16,000 retained earnings. Income and dividend information for Sun is as follows:
2. Pam reported income of $96,000 for 2018. This does not include income from Sun. What is consolidated net income for 2018?
3. What is Pam's Investment in Sun balance at December 31, 2018, under the equity method?
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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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Question Posted: February 28, 2017 11:56:05