Questions from Advanced Accounting

Q: Pam Company paid $440,000 for an 80 percent interest

Pam Company paid $440,000 for an 80 percent interest in Sun Company on July 1, 2016, when Sun had total equity of $220,000. Sun Company reported earnings of $20,000 for 2016 and declared dividends of...

Q: Pop Company acquired a 30 percent interest in the voting stock of

Pop Company acquired a 30 percent interest in the voting stock of Son Company for $331,000 on January 1, 2016, when Son’s stockholders’ equity consisted of capital stock of $600,000 and retained earni...

Q: Pam Corporation paid $190,000 for 40 percent of Sun

Pam Corporation paid $190,000 for 40 percent of Sun Corporation’s outstanding voting common stock on July 1, 2016. Sun’s stockholders’ equity on January 1, 2016, was $250,000, consisting of $150,000 c...

Q: Pam Corporation owned a 90 percent interest in Sun Corporation, and

Pam Corporation owned a 90 percent interest in Sun Corporation, and during 2015 the following changes occurred in Sun’s equity and Pam’s investment in Sun (in thous...

Q: Pop Corporation paid $1,680,000 for a 30

Pop Corporation paid $1,680,000 for a 30 percent interest in Son Corporation’s outstanding voting stock on January 1, 2016. The book values and fair values of Son’s...

Q: Pam Corporation purchased for cash 6,000 shares of voting common

Pam Corporation purchased for cash 6,000 shares of voting common stock of Sun Corporation at $16 per share on July 1, 2016. On this date, Sun’s equity consisted of $100,000 of $10 par capital stock, $...

Q: Pop Corporation acquired 30 percent of the voting stock of Son Company

Pop Corporation acquired 30 percent of the voting stock of Son Company at book value on July 1, 2016. During 2018, Son paid dividends of $160,000 and reported income of $500,000 as follows: Income fr...

Q: Pam Corporation paid $170,000 for an 80 percent interest

Pam Corporation paid $170,000 for an 80 percent interest in Sun Corporation on December 31, 2016, when Sun’s stockholders’ equity consisted of $100,000 capital stoc...

Q: Pam Company owns controlling interests in Sun and Toy Corporations, having

Pam Company owns controlling interests in Sun and Toy Corporations, having acquired an 80 percent interest in Sun in 2016, and a 90 percent interest in Toy on January 1, 2017. Pam’s...

Q: Sun Corporation became a subsidiary of Pam Corporation on July 1,

Sun Corporation became a subsidiary of Pam Corporation on July 1, 2016, when Pam paid $1,980,000 cash for 90 percent of Sun’s outstanding common stock. The price paid by Pam reflecte...