A summary of changes in Pen Corporation's Investment in Sam account from January 1, 2011, to December

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A summary of changes in Pen Corporation's Investment in Sam account from January 1, 2011, to December 31, 2013, follows (in thousands):
A summary of changes in Pen Corporation's Investment in Sam

ADDITIONAL INFORMATION
1. Pen acquired its 80 percent interest in Sam Corporation when Sam had capital stock of $2,400,000 and retained earnings of $1,200,000.
2. Dividends declared by Sam Corporation in each of the years 2011, 2012, and 2013 were equal to 50 percent of Sam Corporation's reported net income.
3. Sam Corporation's assets and liabilities were stated at fair values equal to book values on January 1, 2011.
REQUIRED
Compute the following amounts:
1. Sam Corporation's dividends declared in 2012
2. Sam Corporation's net income for 2012
3. Goodwill at December 31, 2012
4. Noncontrolling interest share for 2013
5. Noncontrolling interest at December 31, 2013
6. Consolidated net income for 2013, assuming that Pen's separate income for 2013 is $1,120,000, without investment income from Sam.

Goodwill
Goodwill is an important concept and terminology in accounting which means good reputation. The word goodwill is used at various places in accounting but it is recognized only at the time of a business combination. There are generally two types of...
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  answer-question

Advanced Accounting

ISBN: 978-0133451863

12th edition

Authors: Floyd A. Beams, Joseph H. Anthony, Bruce Bettinghaus, Kenneth Smith

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