Pam Corporation acquired a 70 percent interest in Sun Corporation's outstanding voting common stock on January 1, 2016, for $490,000 cash. The stockholders' equity of Sun on this date consisted of $500,000 capital stock and $100,000 retained earnings. The difference between the fair value of Sun and the underlying equity acquired in Sun was assigned $5,000 to Sun's undervalued inventory, $14,000 to undervalued buildings, $21,000 to undervalued equipment, and $60,000 to goodwill.

The undervalued inventory items were sold during 2016, and the undervalued buildings and equipment had remaining useful lives of seven years and three years, respectively. Depreciation is straight line.

At December 31, 2016, Sun's accounts payable include $10,000 owed to Pam. This $10,000 account payable is due on January 15, 2017. Pam sold equipment with a book value of $15,000 for $25,000 on June 1, 2016. This is not an intercompany sale transaction. Separate financial statements for Pam and Sun for 2016 are summarized as follows (in thousands):

Required:
Prepare consolidation work-papers for Pam Corporation and Sun for the year ended December 31, 2016. Use an unamortized excess account?

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Combined Income and Retained Earnings Statements for the Year Ended December 3I Income from Sun Depreciation expense Add: Retained earnings January1 Retained earnings December 31 Balance Sheet at December 31 Accounts receivable-net $1,705.2