Pam acquired 80 percent of Sun’s capital stock for $3,320,000 on January 1, 2014, when Sun’s capital stock was

$4,000,000 and Sun’s retained earnings was $150,000.

On January 2, 2016, Pam acquired $400,000 par of Sun’s 10 percent bonds in the market for $391,000, on which date the unamortized premium for bonds payable on Sun’s books was $90,000. The bonds pay interest on January 1 and July 1 and mature on January 1, 2021. (Assume straight-line amortization.)