Pam Corporation acquired 100 percent of Sun Corporation's outstanding voting common stock on January 1, 2016, for $660,000 cash. Sun's stockholders' equity on this date consisted of $300,000 capital stock and $300,000 retained earnings. The difference between the price paid by Pam and the underlying equity acquired in Sun was allocated $30,000 to Sun's undervalued inventory and the remainder to patents with a five-year write-off period. The undervalued inventory items were sold by Sun during 2016. Pam made sales of $100,000 to Sun at a gross profit of $40,000 during 2016; during 2017, Pam made sales of $120,000 to Sun at a gross profit of $48,000. One-half the 2016 sales were inventoried by Sun at year-end 2016, and one-fourth the 2017 sales were inventoried by Sun at year-end 2017. Sun owed Pam $17,000 on account at December 31, 2017. The separate financial statements of Pam and Sun Corporations at and for the year ended December 31, 2017, are summarized as follows (in thousands)

REQUIRED:
Prepare workpapers to consolidate the financial statements of Pam Corporation and Subsidiary at and for the year ended December 31, 2017.

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Pop Combined Income and Retained Earnings Statements for the Year Ended December 31, 2017 Sales Income from Sun Cost of sales Depreciation expense Other expenses $ 800 102 (400) (110) (192) (200) (40) Net income Beinning retained earnings Less: Dividends 380 100) $ 700 Retained earnings December 31, 2017 Balance Sheet at December 31, 2017 $ 54 S 37 Receivables-net Inventories Other assets 100 Buildings -net Equipment net Investment in Sun 150 736 $1,800 $ 160 Total assets Accounts payable Other liabilities Common stock, $10 par Retained earnings $ 47 430 Total equities $1,800