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E 6-2 Discuss effect of intercompany sale of land Sun Corporation is a 90 percent-owned...

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E 6-2 Discuss effect of intercompany sale of land Sun Corporation is a 90 percent-owned subsidiary of Pam Corporation, acquired in 2016. During 2019 Pam sells land to Sun for $100,000 for which it paid $50,000. Sun still owns this land at December 31, 2019. REQUIRED 1. How and in what amount will the sale of land affect Pam's income from Sun and net income for 2019 and the balance of Pam's Investment in Sun account on December 31, 2019? 2. How will the consolidated financial statements of Pam Corporation and Subsidiary for 2019 be affected by the intercompany sale of land? 3. If Sun still owns the land at December 31, 2020, how will Pam's income from Sun and net income for 2020 be affected, and what will be the effect on Pam's Investment in Sun account on December 31, 2020? 4. If Sun sells the land during 2021 for $100,000, how will Pam's income from Sun and total consolidated income for 2021 be affected

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