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 December 2017.
3. Complete the consolidation retained earnings for Pop and Sun at 31 of December 2017.
4. Complete the consolidation balance sheet for Pop and Sun at 31 of December 2017.

Pam 80% Sun A djustments and Eliminations Consolidated Statements Debits Credits

Income Statement

Sales 2080 520

Income from Sun 101.504 ---

Cost of goods sold (1300) (260)

Other expenses (388) (104)

Net Income 494 156

Retained Earnings Statement

Begg Retained earnings 1023.36 218.4

Dividends (260) (83,2)

Ret earnings 31/12

Balance Sheet Statement

Cash 1175.44 378.8

Div receiv from Sun 28.8 ----

Inventories 494 52

Note receiv from Pop ---- 26

Equipmentnet 1560 708

Investment in Sun 1066.624

Patent ??? ???

Total assets 4324.864 1164.8

Accounts payable 442 57.6

Note payable to Sun 26 ----

Dividends payable ----- 36

Capital stock, $10 par 2600 780

Retained earnings 1256.864 291.2

Total equities 4324.864 1164.8