Question: E2-4,5,6 if anyone could, im having a hard time solving. Calculate Income for a midyear Investment Pam Corporation pays $300,000 for a 30 percent interest

E2-4,5,6 if anyone could, im having a hard time solving.
E2-4,5,6 if anyone could, im having a hard time solving. Calculate Income

Calculate Income for a midyear Investment Pam Corporation pays $300,000 for a 30 percent interest in Sun Corporation on July 1, 2016. When the book Sun's identifiable net assets equals fair value. Information relating to sun follows (in thousands); December 31, 2016 $300 Capital stock, Si par 250 Retained earings $550 Total stockholders' equity 5700 Sun's net income camed evenly throughout 2016 $50 Sun's dividends for 2016 (paid $25,000 on March 1 and $25,000 on September 1) December 31, 2015 $300 200 $ 500 REQUIRED: Calculate Pam's income from Sun for 2016 E2-5 Calculate income and Investment balance allocation of excess to undervalued assets Pop Company acquired a 30 percent interest in Son on January 1 for $500,000 cash. Assume the cost of the investment equals the fair value of Son's net assets. Pop assigned the $125,000 excess of fair value over book value of the interen acquired to the following assets: Inventories $25,000 (sold in the current year) Building $50,000 (4-year remaining life at January 1) Goodwill $50,000 During the year Son reported net income of $200,000 and paid $50,000 dividends. REQUIRED 1. Determine Pop's income from Son for the year. 2. Determine the December 31 balance of the Investment in Son account E2-6 Journal entry to record income from Investee with loss from discontinued operations Pam Corporation purchased a 40 percent interest in Sun Corporation for $2,000,000 on January 1, at book value, when Sun's assets and liabilities were recorded at fair values. During the year, Sun reported net income of $1,200,000 as follows (in thousands): Income from continuing operations $1,400 Less: Loss from discontinued operations (200) Net income $1,200 REQUIRED: Prepare the journal entry on Pam's books to recognize income from the investment in Sun for the year

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