Comparative income statements of Pop Corporation and Son Corporation for the year ended December 31, 2018, are as follows (in thousands):

Additional Information
1. Son is a 90 percent-owned subsidiary of Pop, acquired by Pop for $1,620,000 on January 1, 2016, when Son's stockholders' equity at book value was $1,400,000.
2. The excess of the cost of Pop's investment in Son over book value acquired was allocated $60,000 to undervalued inventories that were sold in 2016, $40,000 to undervalued equipment with a four-year remaining useful life, and the remainder to goodwill.
Required:
Prepare a consolidated income statement for Pop Corporation and Subsidiary for the year ended December 31, 2018?

Transcribed Image Text:

Pop Son $3,200 $1,000 Sales Income from Son 261 3,46T 1,000 1,800 400 Total revenue Less: Cost of goods sold Operating expenses Total expenses Net income 410 2,000 861 300 700 300