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. 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 Bess Retained earnings Dividends (260) (83.2) Ret earnings 31/12 Balance Sheet Statement Cash 1175.44 378.8 Div receiv from Sun 28.8 Inventories 494 52 Note receiv from Pop 26 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, SIO par Retained earnings 1256,864 291.2 Total equities 4324.864 116-4.8