On December 31, 2016, Pam Corporation purchased 80 percent of the stock of Sun Company at book value. The data reported on their separate balance sheets immediately after the acquisition follow. At December 31, 2016, Pam Corporation owes Sun $20,000 on accounts payable. (All amounts are in thousands.)

Required
1. Prepare a consolidated balance sheet for Pam Corporation and Subsidiary at December 31, 2016.
2. Compute consolidated net income for 2017 assuming that Pam Corporation reported separate income of $680,000 and Sun Company reported net income of $360,000. (Separate incomes do not include income from the investment in Sun.)

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Pam Sun Assets Cash Accounts receivable Inventories Investment in Sun Equipment-net $ 128 180 572 800 1,520 $ 72 136 224 700 S3.200$1,132 Liabilities and Stockholders' Equity Accounts payable Common stock, $20 par Retained earnings $160 132 600 400 $3,200 $1,132 1,840 1,200