At December 31, 2016, when the fair values of Sun Corporation's net assets were equal to their book values of $2,400,000, Pam Corporation acquired an 80 percent interest in Sun for $2,240,000. One year later, at December 31, 2017, the comparative adjusted trial balances of the two corporations appear as follows (in thousands):

ADDITIONAL INFORMATION:
During 2017, Sun Corporation sold inventory items costing $150,000 to Pam for $230,000. Half of these inventory items remain unsold at December 31, 2017.
REQUIRED:
Prepare comparative consolidated financial statements for Pam Corporation and Subsidiary at and for the year ended December 31, 2017, under
1. Parent-company theory
2. Entity theory

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Pam Sun Corporation Corporati Cash Accounts receivable Inventory Land Buildings Investment in Sun Cost of sales Expenses Dividends $ 408 900 1,600 2,000 9,000 2,400 3,750 1,500 1,200 $22,758 2,000 1,758 8,000 3,600 7,000 400 $22,758 $ 700 300 400 800 2,000 Total debits Accumulated depreciation Accounts payable Capital stock Retained earnings Sales Income from Sun 2,000 500 300 7,000 $ 600 1,000 2,000 400 3,000 Total credits 7,000