On December 31, 2016, Pam Corporation purchased 80 percent of the stock of Sun Company at book value.

The data reported on their separate balance sheets immediately after the acquisition follow.

At December 31, 2016, Pam Corporation owes Sun $20,000 on accounts payable. (All amounts are in thousands.)

	Pam	Sun
Assets
Cash	$128	$72
Accounts Receivable	180	136
inventories	572	224
investments in Sun	800	0
Equipment- Net	1520	700
	3200	1132
Liabilites and Stockholders' Equity
accounts payable	160	132
Common stock, $20 par	1840	600
Retained earnings	1200	400
	3200	1132

REQUIRED
1. Prepare a consolidated balance sheet for Pam Corporation and Subsidiary at December 31, 2016.
2. Compute consolidated net income for 2017 assuming that Pam Corporation reported separate income of
$680,000 and Sun Company reported net income of $360,000. (Separate incomes do not include incomefrom the investment in Sun).