Pop Corporation acquired 80 percent of the outstanding stock of Son Corporation for $1,120,000 cash on January

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Pop Corporation acquired 80 percent of the outstanding stock of Son Corporation for $1,120,000 cash on January 3, 2016, on which date Son's stockholders' equity consisted of capital stock of $800,000 and retained earnings of $200,000.
There were no changes in the outstanding stock of either corporation during 2016 and 2017. At
December 31, 2017, the adjusted trial balances of Pop and Son are as follows (in thousands):
Pop Corporation acquired 80 percent of the outstanding stock of

Additional Information
1. All of Son's assets and liabilities were recorded at fair values equal to book values on January 3, 2016.
2. The current liabilities of Son at December 31, 2017, include dividends payable of $40,000.
Required
Determine the amounts that should appear in the consolidated statements of Pop Corporation and Subsidiary at December 31, 2017, for each of the following:
1. Non-controlling interest share
2. Current assets
3. Income from Son
4. Capital stock
5. Investment in Son
6. Excess of investment fair value over book value
7. Consolidated net income for the year ended December 31, 2017
8. Consolidated retained earnings, December 31, 2016
9. Consolidated retained earnings, December 31, 2017
10. Non-controlling interest, December 31, 2017?

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
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Advanced Accounting

ISBN: 978-0134472140

13th edition

Authors: Floyd A. Beams, Joseph H. Anthony, Bruce Bettinghaus, Kenneth Smith

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