P6-9 Analyze provided separate company and consolidated statements Separate company and consolidated financial statements for Pop Corporation and its only subsidiary, Son Corporation, for 2017 are summarized here. Pop acquired its interest in Son on January 1, 2016, at a price in excess of book value, which was due to an unrecorded patent.

POP CORPORATION AND SUBSIDIARY SEPARATE COMPANY AND CONSOLIDATED FINANCIAL STATEMENTS AT AND FOR THE YEAR ENDED DECEMBER 31, 2017 (IN THOUSANDS)

Pop Son Consolidated Income Statement Sales $ 500 $300 $ 716 Income from Son 17.4 — —

Gain on equipment 20 — —

Cost of sales (200) (150) (275)

Depreciation expense (60) (40) (95)

Other expenses (77) (60) (141)

Noncontrolling interest share — — (4.6)

Controlling share of net income $ 200.4 $ 50 $ 200.4 Pop Son Consolidated Retained Earnings Statement Retained earnings $ 250 $120 $ 250 Net income 200.4 50 200.4 Dividends (100) (30) (100)
Retained earnings $ 350.4 $140 $ 350.4 Balance Sheet Cash $ 21.1 $ 35 $ 56.1 Accounts receivable—net 50 30 70 Dividends receivable 13.5 — —
Inventories 90 60 136 Other current assets 70 40 110 Land 50 20 70 Buildings—net 100 50 150 Equipment—net 300 265 550 Investment in Son 305.8 — —
Patents — — 32 Total assets $1,000.4 $500 $1,174.1 Accounts payable $ 60 $ 50 $ 100 Dividends payable — 15 1.5 Other liabilities 90 95 185 Capital stock, $10 par 500 200 500 Retained earnings 350.4 140 350.4 Noncontrolling interest December 31, 2017 — — 37.2 Total equities $1,000.4 $500 $1,174.1 REQuIRED: Answer the following questions about the financial statements of Pop and Son.
1. What is Pop’s percentage interest in Son Corporation? Provide a computation to explain your answer.