Pam Corporation owned a 90 percent interest in Sun Corporation, and during 2015 the following changes occurred in Suns equity and Pams investment in Sun (in thousands):

	Suns Stockholders Equity	Goodwill	Investment in Sun (90%)
Balance, January 1, 2015	$1,000	$49.5	$949.5
Income2015	250		225
Dividends2015	(150)		(135)
Balance, December 31, 2015	$1,100	$49.5	$1,039.5

During 2016, Suns net income was $280,000, and it declared $40,000 dividends each quarter of the year.

Pam reduced its interest in Sun to 80 percent on July 1, 2016, by selling Sun shares for $120,000.

Required

1. Prepare the journal entry on Pams books to record the sale of Sun shares as of the actual date of sale.

2. Prepare the journal entry on Pams books to record the sale of Sun shares as of January 1, 2016.

3. Prepare a schedule to reconcile the answers to parts 1 and 2.