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2. Prepare consolidated income statements with and without fair value book value differentials. Summary income statement information for Pop Corporation and its 70 percent-owned subsidiary,
2. Prepare consolidated income statements with and without fair value book value differentials. Summary income statement information for Pop Corporation and its 70 percent-owned subsidiary, San, for the year 2012 is as follows (in thousands): Pop San Sales $2,000 S800 Income from San 98 Cost of sales I (1,200) (400) Depreciation expense (100) (80) Other expenses (398) (180) Net income $400 S140 REQUIRED: 1. Assume that Pop acquired its 70 percent interest in San at book value on January 1, 2012, when the fair value of Sans' assets and liabilities were equal to recorded book values. There were no intercompany transactions during 2012 and 2013. Prepare a consolidated income statement for Pop Corporation and Subsidiary for 2013 2. Assume that Pop acquired its 70 percent interest in San on January 1, 2012, for $280,000. S60,000 was allocated a reduction of overvalued equipment with a five- year remaining useful life and the remainder was allocated to goodwill. San's book value of total stockholders' equity was 5640,000. There were no intercompany transactions during 2012 and 2012. Prepare a consolidated income statement for Pop Corporation and Subsidiary for 2013
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