Pop Corporation acquired a 75 percent interest in Son Corporation on January 1, 2016, for…

Pop Corporation acquired a 75 percent interest in Son Corporation on January 1, 2016, for $720,000 in cash. Financial statements of Pop and Son Corporations for 2016 are as follows (in thousands): Pop Son Combined Income and Retained Earnings Statements for the Year Ended December 31 Sales $1,600 $400 Income from Son 72 — Cost of sales (1,000) (200) Other expenses (388) (104) Net income 284 96 Add: Retained earnings January 1 720 136 Deduct: Dividends (200) (64) Retained earnings December 31 $ 804 $168Pop Son Balance Sheet at December 31 Cash $ 236 $ 60 Accounts receivable—net 320 80 Dividends receivable from Son 24 — Inventories 380 40 Note receivable from Pop — 20 Land 260 120 Buildings—net 680 320 Equipment—net 520 200 Investment in Son 744 — Total assets $3,164 $840 Accounts payable $ 340 $ 40 Note payable to Son 20 — Dividends payable — 32 Capital stock, $10 par 2,000 600 Retained earnings 804 168 Total equities $3,164 $840 REQuIRED: Prepare consolidation workpapers for Pop Corporation and Subsidiary for the year ended December 31, 2016. Only the information provided in the financial statements is available; accordingly, your solution will require some standard assumptions.