Pop Corporation paid $686,000 for a 30 percent interest in Son Corporation's outstanding voting stock on April

Question:

Pop paid $686,000 for a 30 percent interest in Son Corporation's outstanding voting stock on April 1, 2016. At December 31, 2015, Son had net assets of $2,000,000 and only outstanding. During 2016, Son declared and paid dividends of $40,000 each quarter on March 15, June 15, September 15, and December 15 ($160,000 in total). At April 1, 2016, the book value of assets and liabilities equals the fair value. Son's 2016 income was reported as follows:
Income from continuing operations ................................ $240,000
Discontinued operations gain, December 2016 ...................... 80,000
Net income ............................................................ $320,000
Required:
Determine the following items for Pop:
1. from the investment in Son
2. Income from Son for 2016
3. Investment in Son account balance at December 31, 2016
4. Pop's equity in Son's net assets at December 31, 2016
5. The amount of discontinued operations gain that Pop will show on its 2016 income statement?
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