Pop Corporation and its 100 percent-owned subsidiary, Son Corporation, are members of an affiliated group with pretax accounting incomes as follows (in thousands):

The gain reported by Pop relates to land sold to Son during the current year. A flat 34 percent income tax rate is applicable. The land remains unsold at year-end.
REQUIRED:
Prepare income statements for Pop Corporation assuming
(a) That separate income tax returns are filed and
(b) That a consolidated income tax return is filed.

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Pop $9,600 Son Sales Gain on sale of land Cost of sales Operating expenses $5,600 400 (4,800) 2.800) $2,400 (2,400) 2.000) $1,200 Pretax accounting income