1. Pop Corporation paid $256,000 for its 80 percent interest in Son on January 1, 2016, when Son had capital stock of $200,000 and retained earnings of $20,000.

2. At December 31, 2017, Pop’s inventory included items on which Son had recorded gross profit of $40,000.

REQuIRED: Prepare a consolidated balance sheet for Pop Corporation and Subsidiary at December 31, 2017, under the entity theory of consolidation.