Pam Corporation owns an 80 percent interest in the common stock of Sam Corporation, acquired several years ago at book value. Pam regularly sells merchandise to Sam. Information relevant to the intercompany sales and profits of Pam and Sam for 2011, 2012, and 2013 is as follows:

REQUIRED
Prepare a schedule showing consolidated net income for each year.

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2011 2012 2013 Sales to Sam Unrealized profit in Sam's inventory $600,000 $720,000 $1,200,000 at December 31 180,000 240,000 3,000,000 3,300,000 120,000 2,850,000 Sam's separate income Pam's separate income (does not include investment income) 1,800,000 2,400,000 2,100,000