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):

Required:
Prepare consolidation work-papers 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?

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Pop Son Combined Income and Retained Earnings Statements for the Year Ended December 31 Sales Income from Son Cost of sales Other expenses Net income Add: Retained earnings January 1 Deduct: Dividends $1,600 72 (1,000) (388) $400 (200) (104) 720 (200 S 804 136 (64) $168 Retained earnings December 31 Balance Sheet at December 31 Accounts receivable-net Dividends receivable from Son Note receivable from Pop Buildings-net Investment in Son 3 Note payable to Son Capital stock, $10 par