Pop Corporation acquired an 80 percent interest in Son Corporation on October 1, 2016, for $82,400, equal to 80 percent of the underlying equity of Son on that date plus $16,000 goodwill (total goodwill is $20,000). Financial statements for Pop and Son Corporations for 2016 are as follows (in thousands):

ADDITIONAL INFORMATION
1. In November 2016, Pop sold inventory items to Son for $12,000 at a gross profit of $3,000. One-third of these items remained in Son's inventory at December 31, 2016, and $6,000 remained unpaid.
2. Son's dividends were declared in equal amounts on March 15 and November 15, and its income was earned in proportionate amounts throughout each quarter of the year.
3. Pop applies the equity method such that its net income is equal to the controlling share of consolidated net income.
REQUIRED:
Prepare a workpaper to consolidate the financial statements of Pop Corporation and Subsidiary for the year ended December 31, 2016.

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Pop Son Combined Income and Retained Earnings Statement for the Year Ended December 31 Sales Income from Son Cost of sales Operating expenses $112 50 3.8 (60) (20) 24 20 (10) $ 34 Net income 30.7 30 (20) $ 40.7 Retained earnings January 1 Dividends Retained earnings December 31 Balance Sheet at December 31 Cash Accounts receivable Note receivable Inventories Plant assets-net Investment in Son $ 5.1 10.4 17 30 60 82.2 Total assets Accounts payable Notes payable Capital stock Retained earnings $110 $ 16 $220.7 15 25 140 50 34 $110 40.7 Total equities $220.7