Q: A summary of changes in Pen Corporation's Investment in Sam account from January 1, 2011, to December 31, 2013, follows (in thousands): ADDITIONAL INFORMATION 1.
.png)
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.
INVESTMENT IN SAM (80%) January 1, 2011 Income-2011 2012 2013 3,040 256 Dividends-2011 2012 2013 to balance 128 160 192 3,520 4,000 320 384 4,000 3,520 December 31, 2013 Balance forward
Step by Step Solution
3.40 Rating (162 Votes )
There are 3 Steps involved in it
Step: 1
Preliminary computations in thousands 80 Investment in Sam at cost January 1 2011 3040 Implied total ... View full answer

Get a step-by-step solution from a verified subject matter expert – not AI-generated answers
Step: 2Unlock detailed examples and clear explanations to master concepts

Step: 3Unlock to practice, ask and learn with real-world examples

Document Format ( 1 attachment)

1095-B-A-C(1072).docx
120 KBs Word File
See step-by-step solutions with expert insights and AI powered tools for academic success
-
Access 30 Million+ textbook solutions.
-
Ask unlimited questions from AI Tutors.
-
24/7 Expert guidance tailored to your subject.
-
Order free textbooks.
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Study Smart with AI Flashcards
Access a vast library of flashcards, create your own, and experience a game-changing transformation in how you learn and retain knowledge
Explore Flashcards