Pam Corporation paid $180,000 cash for a 90 percent interest in Sun Corporation on January 1, 2017, when Sun's stockholders' equity consisted of $100,000 capital stock and $20,000 retained earnings. Sun Corporation's balance sheets at book value and fair value on December 31, 2016, are as follows (in thousands):

ADDITIONAL INFORMATION
1. The amortization periods for the fair value/book value differentials at the time of acquisition are as follows:
Overvalued inventories (sold in 2017) $10,000
Undervalued buildings (10-year useful lives) 20,000
Undervalued equipment (5-year useful lives) 30,000
Goodwill Remainder
2. Pam uses the equity method to account for its interest in Sun.
REQUIRED
1. Prepare a journal entry on Sun Corporation's books to push down the values reflected in the purchase price under parent-company theory.
2. Prepare a journal entry on Sun Corporation's books to push down the values reflected in the purchase price under entity theory.
3. Prepare comparative balance sheets for Sun Corporation on January 1, 2017, under the approaches of (1) and (2).

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Book Value Fair Value $ 20 50 40 15 30 70 $225 45 60 100 20 $225 $ 20 50 30 15 50 100 $265 $ 45 60 Cash Accounts receivable-net Inventories Land Buildings-net Equipment-net Total assets Accounts payable Other liabilities Capital stock Retained earnings Total equities