On January 1, 2016, Pam Corporation purchased a 40 percent interest in Sun Corporation for $1,600,000, when

Question:

On January 1, 2016, Pam purchased a 40 percent interest in Sun for $1,600,000, when Sun's stockholders' equity consisted of $2,000,000 capital stock and $2,000,000 retained earnings. On September 1, 2016,
Pam purchased an additional 20 percent interest in Sun for $840,000. Both purchases were made at book value equal to fair value.
Sun had income for 2016 of $480,000, earned evenly throughout the year, and it paid dividends of $120,000 in April and $120,000 in October.
REQUIRED:
Compute the following:
1. Pam's income from Sun for 2016
2. Preacquisition income that will appear on the for 2016
3. Noncontrolling interest share for 2016
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