Pam Corporation acquired a 70 percent interest in Sun Corporation's outstanding voting common stock on January 1, 2016, for $980,000 cash. The stockholders' equity (book value) of Sun on this date consisted of $1,000,000 capital stock and $200,000 retained earnings. The differences between the fair value of Sun and the book value of Sun were assigned $10,000 to Sun's undervalued inventory, $28,000 to undervalued buildings, $42,000 to undervalued equipment, and $80,000 to previously unrecorded trademarks. Any remaining excess is 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. The trademarks have a 40-year life. Depreciation is straight line.
At December 31, 2016, Sun's accounts payable include $20,000 owed to Pam. This $20,000 account payable is due on January 15, 2017. Separate financial statements for Pam and Sun for 2016 are summarized as follows (in thousands):

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

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Pam Sun Combined Income and Retained Earnings Statements for the Year Ended December 3I Sales Income from Sun Cost of sales Depreciation expense Other expenses $1,600 119 (600) (308) (320) $1,400 (800) (120) (280) Net income 49 Add: Retained earnings January1 Deduct: Dividends 600 (400) 200 (100) 300 Retained earnings December 31 $ 691 Sun Balance Sheet at December 31 2 Accounts receivable -net Dividends receivable Other current assets Investment in Sun 3.389 Accounts payable Dividends payable Capital stock, $20 par Retained earnings Total equities