Sun Corporation became a subsidiary of Pam Corporation on July $1,2016,$ when Pam paid $$1,980,000$

cash for $90$ percent of Sun$$s outstanding common stock. The price paid by Pam reflected the fact that

Sun$$s inventories were undervalued by $$50,000,$ and Sun$$s plant assets were overvalued by $$500,000.$

Sun sold the undervalued inventory items during $2016$ but continues to hold the overvalued plant assets

that had a remaining useful life of nine years from July $1,2016.$

During the years $2016$ through $2018,$ Sun$$s paid$-$in capital consisted of $$1,500,000$ capital stock

and $$500,000$ additional paid$-$in capital. Sun$$s retained earnings statements for $2016,2017,$ and $2018$

were as follows $($in thousands$)$: