P3-7 Calculate items that may appear in consolidated statements two years after acquisition Pop Corporation acquired 80 percent of the outstanding stock of Son Corporation for $1,120,000 cash on January 3, 2016, on which date Son’s stockholders’ equity consisted of capital stock of $800,000 and retained earnings of $200,000.

There were no changes in the outstanding stock of either corporation during 2016 and 2017. At December 31, 2017, the adjusted trial balances of Pop and Son are as follows (in thousands):

Pop Son Debits Current assets $ 816 $ 300 Plant assets—net 1,600 1,200 Investment in Son—80% 1,360 —

Cost of goods sold 1,000 480 Other expenses 200 120 Dividends 240 100

$5,216 $2,200 Credits Current liabilities $ 648 $ 200 Capital stock 2,000 800 Retained earnings 808 400 Sales 1,600 800 Income from Son 160 —

$5,216 $2,200 ADDITIONAL INFORMATION 1. All of Son’s assets and liabilities were recorded at fair values equal to book values on January 3, 2016.

2. The current liabilities of Son at December 31, 2017, include dividends payable of $40,000.

REQuIRED Determine the amounts that should appear in the consolidated statements of Pop Corporation and Subsidiary at December 31, 2017, for each of the following:
1. Noncontrolling interest share 6. Excess of investment fair value over book value 2. Current assets 7. Consolidated net income for the year ended December 31, 2017 3. Income from Son 8. Consolidated retained earnings, December 31, 2016 4. Capital stock 9. Consolidated retained earnings, December 31, 2017 5. Investment in Son 10. Noncontrolling interest, December 31, 2017