Pop Corporation acquired a 90 percent interest in Son Corporation's outstanding voting common stock on January 1, 2016, for $630,000 cash. The stockholders' equity of Son on this date consisted of $500,000 capital stock and $200,000 retained earnings. The financial statements of Pop and Son at and for the year ended December 31, 2016, are summarized as follows (in thousands):

During 2016, Pop made inventory sales of $50,000 to Son at a gross profit of $15,000. One-third of these sales were inventoried by Son at year-end. Son owed Pop $10,000 on open account at December 31, 2016.
Son sold land that cost $20,000 to Pop for $30,000 on July 1, 2016. Pop still owns the land. On January 1, 2016, Pop sold equipment with a book value of $20,000 and a remaining useful life of four years to Son for $40,000. Son uses straight-line depreciation and assumes no salvage value on this equipment.
REQUIRED:
Prepare a consolidation workpaper for Pop and Subsidiary for the year ended December 31, 2016.

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Combined Income and Retained Earnings Statement for the Year Ended December 31, 2016 $ 700 70 $ 500 Income from Son Gain on land Gain on equipment Cost of sales 10 20 (300) (90) (200) Depreciation expense Otherexpenses (35) (65) Net income Beginning retained earnings Dividends 600 200 100) 700 Retained earnings December 31 Balance Sheet at December 31, 2016 Cash Accounts receivable-net Inventories Other current items $ 260 $ 30 110 80 40 70 150 $ 35 90 100 Buildings-net 200 Equipment-net Investment in Son 655 $1,700 $ 160 50 70 500 260 880 Accounts payable Other liabilities Capital stock, $10 par Retained earnings 700