Income data from the records of Pam Corporation and Sun Corporation, Pam's 80 percent-owned subsidiary, for 2016 through 2019 follow (in thousands):

Pam acquired its interest in Sun on January 1, 2016, at a price of $40,000 less than book value. The $40,000 was assigned to a reduction of plant assets with a remaining useful life of 10 years.
On July 1, 2016, Sun sold land that cost $25,000 to Pam for $30,000. This land was resold by Pam for $35,000 in 2019.
Pam sold machinery to Sun for $100,000 on January 2, 2017. This machinery had a book value of $75,000 at the time of sale and is being depreciated by Sun at the rate of $20,000 per year.
Pam's December 31, 2018, inventory included $8,000 unrealized profit on merchandise acquired from Sun during 2018. This merchandise was sold by Pam during 2019.
REQUIRED:
Prepare a schedule to calculate the consolidated net income of Pam Corporation and Subsidiary for each of the years 2016, 2017, 2018, and 2019.

Transcribed Image Text:

2016 2017 2018 2019 Pam's separate income Sun's net income $200 60 $150 70 $40 80 $120 90