Pam Corporation purchased 9,000 shares of Sun Corporation's $50 par

Pam Corporation purchased 9,000 shares of Sun Corporation's $50 par common stock at $90 per share on January 1, 2016, when Sun had capital stock of $500,000 and retained earnings of $300,000. During 2016, Sun Corporation had net income of $50,000 but declared no dividends. On January 1, 2017, Sun Corporation sold an additional 5,000 shares of stock at $100 per share. Sun's net income for 2017 was $70,000, and no dividends were declared.
REQUIRED:
Determine each of the following:
1. The balance of Pam Corporation's Investment in Sun account on December 31, 2016
2. The goodwill that should appear in the consolidated balance sheet at December 31, 2017, assuming that Pam Corporation purchased the 5,000 shares issued on January 1, 2017
3. Additional paid-in capital from consolidation at December 31, 2017, assuming that Sun sold the 5,000 shares issued on January 1, 2017, to outside entities
4. Noncontrolling interest at December 31, 2017, assuming that Sun sold the 5,000 shares issued on January 1, 2017, to outsiders
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...
Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on...
Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...
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...