E5-7 Determine consolidated net income with downstream intercompany sales Pam Corporation owns an 80 percent interest in the common stock of Sun Corporation, acquired several years ago at book value. Pam regularly sells merchandise to Sun. Information relevant to the intercompany sales and profits of Pam and Sun for 2016, 2017, and 2018 is as follows: 2016 2017 2018 Sales to Sun Unrealized profit in Sun's inventory at December 31. $600 $720 $1,200 180 240 120 Sun's separate income 3,000 3,300 2,850 Pam's separate income (does not include 1,800 2,400 2,100 investment income) REQUIRED: Prepare a schedule showing consolidated net income for each year.