Pop Corporation acquired an 80 percent interest in Son Corporation on January 2, 2016, for $1,400,000. On

Question:

Pop acquired an 80 percent interest in Son on January 2, 2016, for $1,400,000. On this date the capital stock and retained earnings of the two companies were as follows (in thousands):
____________________ Pop ________________ Son
Capital stock ............$3,600 ................... $1,000
Retained earnings ...... 1,600 ........................200
The assets and liabilities of Son were stated at fair values equal to book values when Pop acquired its 80 percent interest. Pop uses the equity method to account for its investment in Son. Net income and dividends for 2016 for the affiliated companies were as follows (in thousands):
______________________________________ Pop ______ Son
Net income .......................................................$600 ........$180
Dividends declared ...................................... 360 ........ 100
Dividends payable December 31, 2016 ..............180 ........... 50
Required:
Calculate the amounts at which the following items should appear in the consolidated on December 31, 2016.
1. Capital stock
2.
3. Consolidated retained earnings
4. Non-controlling interest
5. Dividends payable?
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