Pop Corporation acquired an 80 percent interest in Son Corporation common stock for $240,000 on January 1, 2015, when Son's stockholders' equity consisted of $200,000 common stock, $100,000 preferred stock, and $25,000 retained earnings. The excess was due to goodwill. Intercompany sales of inventory items from Pop to Son were $50,000 in 2015 and $60,000 in 2016. The cost of these items to Pop was 60 percent of the selling price to Son, and Son inventoried $30,000 of the intercompany sales items at December 31, 2015, and $40,000 at December 31, 2016. Intercompany receivables and payables from these sales were $10,000 at December 31, 2015, and $5,000 at December 31, 2016.

Son sold land that cost $10,000 to Pop for $20,000 during 2015. During 2016, Pop resold the land outside the consolidated entity for $30,000. On July 1, 2016, Pop purchased all of Son's bonds payable in the open market for $91,000. These bonds were issued at par, have interest payment dates of June 30 and December 31, and mature on June 30, 2019.

Son declared and paid dividends of $10,000 on its cumulative preferred stock and $10,000 on its common stock in each of the years 2015 and 2016. Financial statements for Pop and Son Corporations at and for the year ended December 31, 2016, are summarized as follows (in thousands):

REQUIRED:
Prepare a consolidation workpaper for Pop Corporation and Subsidiary for the year ended December 31, 2016.

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0 Son Combined Income and Retained Earnings Statement for the Year Ended December 31 Sales Gain on land Interest income Income from Son Cost of sales Operating expenses Interest expense $ 900300 6.5 50 (600) (140) (208.5 90) (10) 60 50 Net income Add: Beginning retained earnings Deduct: Dividends 132 100 (20) $ 90 Retained earnings December 31 $ 190 Balance Sheet at December 31 Cash Accounts receivable Inventories Other current assets Land Plant and equipment-net Investment in Son-bonds Investment in Son-stock $ 5.5 S 15 20 60 26 80 100 160 268 30 420 92.5 282 $1,014 S 24 Total assets Accounts payable 10% bonds payable Other liabilities 10% preferred stock Common stock Retained earnings $550 $ 15 100 45 100 200 90 550 100 700 190 $1,014 Total equities