P4-3 Workpapers in year of acquisition (goodwill and intercompany transactions) Pam Corporation acquired a 75 percent interest in Sun Corporation on January 1, 2016. Financial state- ments of Pam and Sun Corporations for the year 2016 are as follows (in thousands): Pam Sun Combined Income and Retained Earnings Statements for the Year Ended December 31 Sales $1,600 5400 Income from Sun 55.2 Cost of sales (1.000) (200) Other expenses (388) (104) Net income 2672 6 Add: Retained earnings January 1 720 136 Deduct: Dividends (200) Retained earnings December 31 787.2 $168 Balance Sheet at December 31 Cash $ 212 $60 Accounts receivable net 344 80 Dividends receivable from Sun 24 Inventories 380 40 Note receivable from Pam 20 Land 260 120 Buildings niet 320 Equipment net 520 200 Investment in Sun 7272 Total assets $32.1472 5840 Accounts payable 5 340 $ 40 Note payable to Sun 20 Dividends payable 32 Capital stock, S10 par 2,000 Retained earnings 7872 168 Total equities 53,14722 3840 680 600 REQUIRED: Prepare consolidation workpapers for Pum Corporation and Subsidiary for the year ended December 31, 2016. 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 224,000 and a useful life of 10 years