Pam Company owns controlling interests in Sun and Toy Corporations, having acquired an 80 percent interest in Sun in
2016, and a 90 percent interest in Toy on January 1, 2017. Pams investments in Sun and Toy were at book value equal to fair value.

Inventories of the affiliated companies at December 31, 2017, and December 31, 2018, were as follows:

		Dec 31 2017	Dec 31. 2018
	Pam inventories	120000	108000
	Sun inventories	77500	62500
	Toy inventories	48000	72000

Pam sells to Sun at a 25 percent markup based on cost, and Toy sells to Pam at a 20 percent markup based on cost.

Pams beginning and ending inventories for 2018 consisted of 40 percent and 50 percent, respectively, of goods

acquired from Toy. All of Suns inventories consisted of merchandise acquired from Pam.

Required:
1. Calculate the inventory that should appear in the December 31, 2017, consolidated balance sheet.
2. Calculate the inventory that should appear in the December 31, 2018, consolidated balance sheet.