Pam Corporation acquired an 80 percent interest in Sun Corporation on January 1, 2016, for $108,000 cash, when Sun's capital stock was $100,000 and retained earnings were $10,000. The difference between investment fair value and book value acquired is due to a patent being amortized over a 10-year period. Separate financial statements for Pam and Sun on December 31, 2019, are summarized as follows (in thousands):

ADDITIONAL INFORMATION
1. Sun's sales include intercompany sales of $8,000, and Pam's December 31, 2019, inventory includes $1,000 profit on goods acquired from Sun. Pam's December 31, 2018, inventory contained $2,000 profit on goods acquired from Sun.
2. Pam owes Sun $4,000 on account.
3. On January 1, 2018, Sun sold plant assets to Pam for $60,000. These assets had a book value of $40,000 on that date and are being depreciated by Pam over five years.
4. Pam uses the equity method to account for its investment in Sun.
REQUIRED:
Prepare a consolidation workpaper for Pam Corporation and Subsidiary for 2019.

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Sun Combined Income and Retained Earnings Statement for the Year Ended December 31, 2019 Sales Income from Sun Cost of sales Other expenses 650 $120 (390) (170) (40) (30) Net income Add: Beginning retained earnings Deduct: Dividends 95.6 Retained eamings December 31 Balance Sheet at December 31, 2019 $157.6 58 S 20 Accounts receivable Inventories Plant assets Accumulated depreciation Inve stment in Sun 35 205 (100) (70) 121.6 499 Total assets Accounts payable Retained earnings S 30 100 S 42 Capital stock 157.6 Total equities