P8-7 Consolidated income statement (midyear purchase of additional interest) Comparative separate company and consolidated balance sheets for Pam Corporation and its 70 percent-owned subsidiary, Sun Corporation, at year-end 2016, were as follows (in thousands): Pam Sun $ $ 100 800 500 70 100 130 800 Consolidated $ 170 900 630 4,300 3.500 600 Cash Inventories Other current assets Plant assets-net Investment in Sun Goodwill Total assets Current liabilities Capital stock, $10 par Other paid-in capital Retained earnings Noncontrolling interest Total equities $5.500 $ 500 3.000 1.000 1.000 $1.100 $ 300 500 100 200 40 $6,040 $ 800 3,000 1.000 1.000 240 $6,040 $5.500 $1.100 296 CHAPTER 8 Sun's net income for 2017 was $150,000, and its dividends for the year were $80,000 ($40,000 on March 1, and $40,000 on September 1). On April 1, 2017. Pam increased its interest in Sun to 80 percent by purchasing 5,000 shares in the market at $19 per share. Separate incomes of Pam and Sun for 2017 are computed as follows: Sun Sales $1.200 Pam S2,000 (1.200) 800 (400) (100) $ 300 Cost of sales Gross profit Depreciation expense Other expenses Separate incomes (700) 500 (300) (50) 150 REQUIRED 1. Prepare a consolidated income statement for the year ended December 31, 2017. 2. Prepare a schedule to show how Sun's net income and dividends for 2017 are allocated among noncontrol- ling interests and controlling interests