P4-4 Consolidation workpapers from separate financial statements Pop Corporation acquired a 75 percent interest in Son Corporation on January 1, 2016, for $720,000 in cash. Financial statements of Pop and Son Corporations for 2016 are as follows (in thousands):

Pop Son Combined Income and Retained Earnings Statements for the Year Ended December 31 Sales $1,600 $400 Income from Son 72 —

Cost of sales (1,000) (200)

Other expenses (388) (104)

Net income 284 96 Add: Retained earnings January 1 720 136 Deduct: Dividends (200) (64)

Retained earnings December 31 $ 804 $168 Pop Son Balance Sheet at December 31 Cash $ 236 $ 60 Accounts receivable—net 320 80 Dividends receivable from Son 24 —
Inventories 380 40 Note receivable from Pop — 20 Land 260 120 Buildings—net 680 320 Equipment—net 520 200 Investment in Son 744 —
Total assets $3,164 $840 Accounts payable $ 340 $ 40 Note payable to Son 20 —
Dividends payable — 32 Capital stock, $10 par 2,000 600 Retained earnings 804 168 Total equities $3,164 $840 R E Q u I R E D :Prepare consolidation workpapers for Pop Corporation and Subsidiary for the year ended December 31, 2016. Only the information provided in the financial statements is available; accordingly, your solution will require some standard assumptions.