Problem $5-9($LO $2)90\%,$ cost$,$ machine, merchandise, effective interest bonds. Princess Company acquired a $90\%$ interest in Sundown Company on January $1,2011,$ for $$675,000.$ Any excess of cost over book value was due to goodwill.

Capital balances of Sundown Company on January $1,2011,$ were as follows:

$\backslash$table$[[\backslash$table$[[$Common stock $($ $$10$ par$).....],[$Paid$-$in capital in excess of par$],[$Retained earnings $..........]],\backslash$table$[[$$$200,000$