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Comparative financial statements for Pam and Sam for 2019 are as follows: Eliminations Consolidated Pam Sam Debi Credit INCOME STATEMENT Sales 210,000 $130,000 Income from Sam 34,400 Other expenses Depreciation Expenses Gain on sale of land 110.000 60.000 40.000 30.000 10,000 Net income Retained Earnings 1/1 Add: Net income Less: Dividends Retained Earnings 12/31 94,400 50.000 145,400 50.000 94,400 50.000 30,000) 209.800 100.000 BALANCE SHEET Current assets Plant assets Accumulated depreciation Investment in Sun Co 200,000 170,000 $50,000 50,000 120.000 70.000 329,800 1959,800 $450,000 100 TOTAL ASSETS TOTAL ASSETS LIAB & EQUITY Accounts payable Capital Stock Retained Earnings 150,000 50.000 600,000 300.000 209,800 100.000 TOTAL LIAB. & EQUITY959,800 450.000 Additional information: 1. Pam acquired 80% interest in Sam on 1/1/2014 for $290,000, when Sam's equity was $300,000 common stocks. The excess of fair value over book value was related to 50% undervalued inventory and 50% goodwill. 2. Sam sold equipment to Pam for $25,000 on 1/1/2018, when the equipment had a book value of $10,000- and 5- years useful life (included in plant assets). 3. During 2019, Sam sold land to Pam at a profit of $10,000 (included in plant assets). Required: Prepare a consolidation working paper for 2019. Show all the necessary calculation

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