Pam Corporation paid $10,000,000 for Sun Corporation's voting common stock on January 2, 2016, and Sun was dissolved. The purchase price consisted of 200,000 shares of Pam's common stock with a market value of $8,000,000, plus $2,000,000 cash. In addition, Pam paid $200,000 for registering and issuing the 200,000 shares of common stock and $400,000 for other costs of combination. Balance sheet information for the companies immediately before the acquisition is summarized as follows (in thousands):

Required
1. Prepare journal entries for Pam Corporation to record its acquisition of Sun Corporation, including all allocations to individual asset and liability accounts.
2. Prepare a balance sheet for Pam Corporation on January 2, 2016, immediately after the acquisition and dissolution of Sun?

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Sun Book Value Book Value Fair Value Accounts receivable -net Notes receivable-net Other current assets Equipment-net $120,000 12,00014,400 Accounts payable Mortgage payable-10% Capital stock, $10 par Other paid-in capital Retained earnings Total equities 40,000 2 $12,000