A summary of changes in the stockholders’ equity of Sin Corporation from January 1, 2011, to December 31, 2012, appears as follows (in thousands):
| Capital Stock $10 Par | Additional Paid-In Capital | Retained Earnings | Total Equity |
Balance January 1, 2011 | $500 | — | $50 | $550 |
Dividends, December 2011 | — | — | (50) | (50) |
Income, 2011 | — | — | 100 | 100 |
Balance December 31, 2011 | $500 | — | $100 | $600 |
Sale of stock January 1, 2012 | 100 | $ 62 | — | 162 |
Dividends, December 2012 | — | — | (60) | (60) |
Income, 2012 | — | — | 150 | 150 |
Balance December 31, 2012 | $600 | $ 62 | $190 | $852 |
Par Corporation purchases 40,000 shares of Sin’s outstanding stock on July 1, 2011, in the open market for $620,000 and an additional 10,000 shares directly from Sin for $162,000 on January 1, 2012. Any excess of investment fair value over book value is due to goodwill.
REQUIRED
1. Determine the balance of Par’s Investment in Sin account on December 31, 2011.
2. Compute Par’s investment income from Sin for 2012.
3. Determine the balance of Par’s Investment in Sin account on December 31, 2012.
We need at least 10 more requests to produce the solution.
0 / 10 have requested this problem solution
The more requests, the faster the answer.