: Pam Sun Cost Selling Price 2015 Sales—Pop to Son $640 $720 2016 Sales—Son to Pop 360 480 Unsold at Year-End 25% 40 r e Q U I r e D : Prepare a corrected consolidated income statement for Pop and Son for the year ended Decem- ber 31, 2016. PrOBLeMS P 5-1 Consolidated income and retained earnings (upstream sales, noncontrolling interest) Pam Corporation acquired its 90 percent interest in Sun Corporation at its book value of $3,600,000 on January 1, 2016, when Sun had capital stock of $3,000,000