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 $400 $1,600 55.2 (1,000) (388) 267.2 720 (200) $ 787.2 (200) (104) 96 136 (64) $168 Combined Income and Retained Earnings Statements for the Year Ended December 31 Sales Income from Sun Cost of sales Other expenses Net income Add: Retained earnings January 1 Deduct: Dividends Retained earnings December 31 Balance Sheet at December 31 Cash Accounts receivablenet Dividends receivable from Sun Inventories Note receivable from Pam Land Buildings-net Equipment-net Investment in Sun Total assets $ 60 80 $ 212 344 24 380 260 680 520 727.2 $3,147.2 40 20 120 320 200 $840 $ 40 $ 340 20 32 Accounts payable Note payable to Sun Dividends payable Capital stock, $10 par Retained earnings Total equities 600 2,000 787.2 $3,147.2 168 $840 REQUIRED: Prepare consolidation workpapers for Pam 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