On January 1, 2016, Pam Corporation acquired a 90 percent interest in Sun Corporation for…

 
   

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On January 1, 2016, Pam Corporation acquired a 90 percent interest in Sun Corporation for $1,260,000. The book values and fair values of Sun s assets and equities on this date are as follows (in thousands): REQUIRED 1. Prepare the journal entries on Sun Corporation s books to push down the values reflected in the acquisition price under parent-company theory. 2. Prepare the journal entries on Sun Corporation s books to push down the values reflected in the acquisition price under entity theory.