E 7-5 Consolidated income statement (constructive gain on purchase of parent's bonds) Comparative income statements for Pam Corporation and its 100 percent-owned subsidiary, Sun Corporation, for the year ended December 31, 2024, are summarized as follows: Pam Sun Sales $1,000,000 $500,000 Income from Sun 226,000 Bond interest income (includes 22,000 discount amortization) Cost of sales (670,000) (200,000) Operating expenses (150,000) (100,000) Bond interest expense (50,000) Net income $356,000 $222,000 Pam purchased its interest in Sun at fair value equal to book value on January 1, 2016. On January 1, 2017, Pam sold $500,000 par of 10 percent, 10-year bonds to the public at par, and on January 2, 2024, Sun purchased $200,000 par of the bonds at 97. The companies use straight-line amortization. There are no other intercompany transactions between the affiliates. REQUIRED: Prepare a consolidated income statement for Pam Corporation and Subsidiary for the year ended December 31, 2024.