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 entries. Only the information provided in the financial statements is available; accordingly, your solution will 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. 3- Complete the consolidation retained earnings for Pop and Sun at 31 of December 2017. 4- Complete the consolidation balance sheet for Pop and Sun at 31 of December 20 Pam 80% Sun Adjustments and Eliminations Debits Credits Consolidated Statements Income Statement 520 Sales Income from Sun Cost of goods sold Other expenses 2080 101.504 (1300) (388) (260) (104) Retained Earnings Statement 1023.36 218.4 Beg Retained earnings (260) (83,2) Dividends Net earnings 31/12 Balance Sheet Statement 1175.44 378.8 28.8 494 52 26 708 Cash Div receiv from Sun Inventories Note receiv from Pop Equipmentnet Investment in Sun Patent Total assets Accounts payable Note payable to Sun Dividends payable 1560 1066.624 4324.864 442 26 1164.8 57.6 36 2600 780 Capital stock, $10 par Retained earnings 1256.864 291.2 Total equities 4324.864 1164.8