Advanced financial accounting 2020-2021 Case study 3 Pam Corporation acquired an 80 percent interest in Sun Corporation on January 1, 2017. Financial statements of Pam and Sun Corporations for the year 2017 are provided in the next page in thousands): REQUIRED: 1- Prepare worksheet entries. Only the information provided in the financial statements is available; accordingly, your solution will require some standard assumptions. Sun owned unrecorded patents having a fair value of 582,400 with a useful life of 10 years. 2- Complete the consolidation income statement for Pop and Sun at 31 of December 2017. 3- Complete the consolidation retained earnings for Pop and Sun at 31 of December 2017. 4- Complete the consolidation balance sheet for Pop and Sun at 31 of December 2017. Advanced financial accounting 2020-2021 Pam 80% Sun Adjustments and Eliminations Debits Credits Consolidated Statements Sales Income from Sun Cost of goods sold Other expenses Income Statement 2080 520 101.504 (1300) (260) (388) (104) Retained Earnings Statement 1023.36 218.4 Begg Retained earninas (260) (83,2) Dividends Ret earnings 31/12 Balance Sheet Statement 1175.44 378.8 28.8 494 52 26 1560 708 1066.624 Cash Div receiv from Sun Inventories Note receiv from Pop Equipment-net Investment in Sun Patent Total assets Accounts payable Note payable to Sun Dividends pavable 4324.864 442 1164.8 57.6 26 36 Advanced financial accounting 2020-2021 2600 780 Capital stock, $10 par Retained earnings 1256.864 291.2 Total equities 4324.864 11164.8