Pam Corporation acquired an 80 percent interest in Sun Corporation on January 1, 2017. Financial statements of Pam and Sun Corporations for the year 2017 are provided in next page (in thousands):

REQUIRED:

1-Prepare worksheet entries. 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 582,400 with a useful life of 10 years.

2-Complete the consolidation income statement for Pop and Sun at 31 of December2017.

3-Complete the consolidation retained earnings for Pop and Sun at 31 of December2017.

Complete the consolidation balance sheet for Pop and Sun at 31 of December2017.

Sales Income from Sun Cost of goods sold Other expenses Begg Retained earnings Dividends Ret earnings 31112 Cash Div receiv from Sun Inventories Note receiv from Pop Equipmentnet Investment in Sun Patent Total assets Accounts payable Note payable to Sun Dividends payable Capital stock, $10 par Retained earnings Total equities Pam 80% Sun Adjustments and Consolidated Eliminations Statements Debits Credits Income Statement 2080 520 101 .504 (1300) (260) (388) (104) Retained Earnings Statement 1023.36 218.4 (260) (83,2) Balance Sheet Statement 1175.44 378.8 28.8 494 52 26 1560 708 1066.624 4324.864 1164.8 442 57.6 26 36 2600 780 1256.864 291.2 4324.864 1164.8