Comparative adjusted trial balances for Pam Corporation and Sun Corporation are given here. Pam Corporation acquired an 80 percent interest in Sun Corporation on January 1, 2016, for $80,000 cash. Except for inventory items that were undervalued by $1,000 and equipment that was undervalued by $4,000, all of Sun's identifiable assets and liabilities were stated at their fair values on December 31, 2015. The remaining excess was assigned to previously unrecorded intangibles, which had a 40-year remaining life.
Sun sold the undervalued inventory items during 2016 but continues to own the equipment, which had a four-year remaining useful life as of December 31, 2015. (All amounts are in thousands.)

Required:
Prepare consolidation work-papers for Pam Corporation and Subsidiary for 2016 and 2017 using the financial statement approach?

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December 31, 2015 December 31, 2016 December 31, 2017 Trade receivables -net Dividends receivable Plant and equipment-net Inve stment in Sun Operating expenses Accounts payable Dividends payable 6 Income from Sun $400 $460 $220