Pam Corporation paid $7,200,000 for 360,000 shares of Sun Corporation's outstanding voting common stock on January 1, 2016, when the stockholders' equity of Sun consisted of (in thousands):
10% cumulative, preferred stock, $100 par. Liquidation preference is ........... $2,000
$105 per share, and 20,000 shares are issued and outstanding
with one year's dividends in arrears
Common stock, $10 par, 400,000 shares issued and outstanding ................... 4,000
Other paid-in capital ....................................................................... 1,000
Retained earnings .......................................................................... 1,300
Total stockholders' equity ................................................................ $8,300
During 2016, Sun reported net income of $1,000,000 and declared dividends of $800,000. Any excess of fair value over book value is goodwill, which is not amortized.
REQUIRED:
Calculate the following:
1. Goodwill from Pam's acquisition of Sun
2. Pam's income from Sun for 2016
3. Noncontrolling interest share for 2016
4. Noncontrolling interest in Sun at December 31, 2016
5. Pam's Investment in Sun account balance at December 31, 2016