Case study 3 Pam Corporation acquired an 80 percent interest in Sun Corporation on January 1, 2017. Financial statements of Pam and Sun Corporations for the year 2017 are provided in the next page (in thousands): REQUIRED: 1. Prepare worksheet worksheet entries. Only the information provided in the financial statements is available; accordingly, your solution will require require some standard assumptions. Sun owned unrecorded patents having a fair value of 582,400 with a useful life of 10 years. 2. Complete the consolidation income statement for Pop and Sun at 31 of December 2017. Complete the consolidation retained earnings for Pop and Sun at 31 of December 2017. Complete the consolidation balance sheet for Pop and Sun at 31 of December 2017. Pam 80% Sun Adjustments and Consolidated Eliminations Statements Debits Credits Income Statement 2080 520 101.504 (1300) (260) (388) (104) Sales Income from Sun Cost of goods sold Other expenses Retained Earnings Statement 1023.36 218,4 Begg Retained earnings (260) (83.2) Dividends Ret earnings 31/12 Balance Sheet Statement 1175,44 378.8 28.8 Div receiv from Sun Inventories 494 52 Note receiv from Pop Equipment-net 1560 708 Investment in Sun 1066.624 Patent Total assets 4324.864 1164.8 Accounts payable 442 57.6 Note payable to Sun 26 Dividends payable 36 2600 780 Capital stock, S10 par Retained earnings 1256.864 291.2 Total equities 4324.864 1164.8