Pam Corporation purchased 40 percent of the voting stock of Sun Corporation on July 1, 2016, for $600,000. On that date, Sun's stockholders' equity consisted of capital stock of $1,000,000, retained earnings of $300,000, and current earnings (just half of 2016) of $100,000. Income is earned proportionately throughout each year. The Investment in Sun account of Pam Corporation and the retained earnings account of Sun Corporation for 2016 through 2019 are summarized as follows (in thousands):

Required 1. Determine the correct amount of the investment in Sun that should appear in Pam's December 31, 2019, balance sheet. Assume any difference between investment cost and book value acquired is due to goodwill. Detailed answer please. Thank you 2. Prepare any journal entry (entries) on Pam's books to bring the Investment in Sun account up to date on December 31, 2019, assuming that the books have not been closed at year-end 2019?

RETAINED EARNINGS (SUN) Dividends November 1, 2016 Dividends November 1, 2017 Dividends November 1, 2018 Dividends November 1, 2019 $80 80 100 100 Balance January 1, 2016 Earnings 2016 Earnings 2017 Earnings 2018 Earnings 2019 $300 200 160 260 240 INVESTMENT IN SUE (PAM) Investment July 1, 2016 40% Income 2016 Income 2017 Income 2018 Income 2019 $600 80 64 104 96 Dividends 2016 Dividends 2017 Dividends 2018 Dividends 2019 $32 32 40 40