On January 1, 2016, Pam Corporation acquired a 90 percent interest in Sun Corporation for $1,260,000. The book values and fair values of Sun's assets and equities on this date are as follows (in thousands):

REQUIRED
1. Prepare the journal entries on Sun Corporation's books to push down the values reflected in the acquisition price under parent-company theory.
2. Prepare the journal entries on Sun Corporation's books to push down the values reflected in the acquisition price under entity theory.

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Book Value Fair Value Cash Accounts receivable-net Inventories Land Buildings-net Equipment-net $ 100 150 250 150 350 400 $1,400 $ 275 225 500 400 $1,400 S 100 150 300 400 500 300 $1,750 275 275 Accounts payable Other liabilities Capital stock Retained earnings