3. Pam Corporation owns 80 percent of Sun’s common stock. During 2016, Pam sold Sun $750 of inventory on the same terms as sales made to third parties. Sun sold 100 percent of the inventory purchased from Pam in 2016. The following information pertains to Sun’s and Pam’s sales for 2016:

Pam Sun Sales $3,000 $2,100 Cost of sales 1,200 1,050

$1,800 $1,050