A summary of changes in the stockholders’ equity of Sin

A summary of changes in the stockholders' equity of Sin Corporation from January 1, 2011, to December 31, 2012, appears as follows (in thousands):

Capital Stock $10 Par Additional Paid-in Retained Total Equity Capital Earnings Balance January 1. 2011 Dividends. Decem


Par Corporation purchases 40,000 shares of Sin's outstanding stock on July 1, 2011, in the open market for $620,000 and an additional 10,000 shares directly from Sin for $162,000 on January 1, 2012. Any excess of investment fair value over book value is due to goodwill.
REQUIRED
1. Determine the balance of Par's Investment in Sin account on December 31, 2011.
2. Compute Par's investment income from Sin for 2012.
3. Determine the balance of Par's Investment in Sin account on December 31,2012.

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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