The stockholders' equity of Sun Corporation at December 31, 2016, was $380,000, consisting of the following (in thousands):

Capital stock, $10 par (24,000 shares outstanding) ........................ $240

Additional paid-in capital .........................................................60

Retained earnings ...................................................................80

Total stockholders' equity ......................................................$380

On January 1, 2017, Sun Corporation, which was in a tight working capital position, sold 12,000 shares of previously unissued stock to Pam Corporation for $250,000. All of Sun's identifiable assets and liabilities were recorded at fair values on this date except for a building with a 10-year remaining useful life that was undervalued by $60,000. During 2017, Sun Corporation reported net income of $120,000 and paid dividends of $90,000.

Required:

Prepare all journal entries necessary for Pam Corporation to account for its investment in Sun for 2017?