3. After these investments were made, Pop was able to exercise control over the operations of both companies.

An analysis of the retained earnings of each company for 2016 is as follows:

Pop Son Sam Balance January 1 $ 960,000 $ 80,000 $160,000 Net income (loss) 418,400 144,000 (48,000)

Cash dividends paid (160,000) (64,000) (36,000)

Balance December 31 $1,218,400 $160,000 $ 76,000 REQuIRED 1. What entries should have been made on the books of Pop during 2016 to record the following?

a. Investments in subsidiaries

b. Subsidiary dividends received

c. Parent’s share of subsidiary income or loss