Pop Corporation acquired 100 percent of Son Corporation's outstanding voting common stock on January 1, 2016, for $660,000 cash. Son's stockholders' equity on this date consisted of $300,000 capital stock and $300,000 retained earnings. The difference between the fair value of Son and the underlying equity acquired in Son was allocated $30,000 to Son's undervalued inventory and the remainder to goodwill. The undervalued inventory items were sold by Son during 2016. Pop made sales of $100,000 to Son at a gross profit of $40,000 during 2016; during 2017, Pop made sales of $120,000 to Son at a gross profit of $48,000. One-half the 2016 sales were inventoried by Son at year-end 2016, and one-fourth the 2017 sales were inventoried by Son at year-end 2017. Son owed Pop $17,000 on account at December 31, 2017. The separate financial statements of Pop and Son Corporations at and for the year ended December 31, 2017, are summarized as follows:

REQUIRED:
Prepare workpapers to consolidate the financial statements of Pop Corporation and Subsidiary at and for the year ended December 31, 2017.

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Pop Combined Income and Retained Earnings Statement for the Year Ended December 31, 2017 (in thousands) Sales Income from Son Cost of sales Depreciation expense Other expenses $ 800 108 (400) (110) (200) (40) (60) Net income Beginning retained eamings Less: Dividends 380 712 $ 54 100 Retained eamings December 31, 2017 Balance Sheet at December 31, 2017 $ 37 Receivables-net Inventories Other assets Buildings-net Equipment-net Investment in Son 150 748 $1,812 S 160 Total assets Accounts payable Other liabilities Common stock, $10 par Retained eanings $ 47 Total equities