Pam Corporation acquired 70% of the outstanding voting stock of Sun Corporation for $980,000 on Jan 1, 2016. The stockholders equity of Sun on this date consisted of $1,000,000 capital stock. and $200,000 retained earnings. The differences the price paid by Pam and the book value of Sun were allocated: $10,000 to undervalued inventory, $28,000 to undervalued building, $42,000 to overvalued equipment and $80,000 to a trademark. Any remaining excess is goodwill. The undervalued inventory items were sold duirng 2016 and the undervalued buildings and overvalued equipment had remaining useful lives of seven years and three years respectively. The Trademark have a 40 year life. Depreciation is straight line.

Pam Corporation sold equipment with a 5 year remaining useful life to Sun on Aprl 1 for a gain of $ 20,000. Note this equipment is not connected with overvalued equipment above.

At December 31,2016 Sun's accounts payable included $20,000 owed to Pam from sale of equipment which is due for payment on January 15, 2017.

Complete the consolidation working papers for Pam and Sun for the year 2016

PAN Corporation & Subsidiary
Consolidated Workpapers
For year ended December 31,2016			Elimination Entries	Consol'd
(in thousands)	PAM	SUN	Debit	Credit	Totals
INCOME STATEMENT
Sales	1,600,000	1,400,000
Income from Sun	121,600
Gain on sale equipment	20,000
Cost of Sales	(600,000)	(800,000)
Depreciation exp	(308,000)	(120,000)
Other exp	(320,000)	(280,000)
Noncontrolling
interest share
Net Income	513,600	200,000
Retained Earn Jan 1	600,000	200,000
Net income	513,600	200,000
Dividends	(400,000)	(100,000)
Retained Earn Dec 31	713,600	300,000
BALANCE SHEET
ASSETS:
Cash	172,000	120,000
Accounts Rec net	220,000	140,000
Dividends Rec	28,000
Inventories	300,000	200,000
Other current assets	140,000	60,000
Land	100,000	200,000
Buildings-net	280,000	320,000
Equipment -net	1,140,000	660,000
Investment in SUN	1,031,600
Trademark
Goodwill
Total Assets	3,411,600	1,700,000
Liab and Equity:
Accounts Payable	400,000	170,000
Dividends Payable	200,000	40,000
Other liabilities	98,000	190,000
Capital Stock $ 10 par	2,000,000	1,000,000
Retained Earnings	713,600	300,000
Non Control Interest
Total Liab & Equity	3,411,600	1,700,000