2018 Pop sold equipment with a four-year remaining useful life to Son on January 1 for $40,000. This equipment had a book value of $25,000 at the time of sale and was still in use by Son at December 31, 2019. 2019 Son purchased $50,000 par of Pop's 10% bonds in the bond market for $53,000 on January 2, 2019. These bonds had a book value of $49,000 when acquired by Son and mature on January 1, 2023. The separate income of Pop (excludes income from Son) and the reported net income of Son for 2016 through 2019I were: 2016 2017 2018 2019 Separate income of Pop $250,000 $132,500 $230,000 $255,000 Net income of Son 50,000 60,000 55,000 60,000 H E 0 U I R E D :Compute Pop's net income (and the controlling share of consolidated net income) for each of the years 2016 through 2019. A schedule with columns for each year is suggested as the most efcient approach to solve this problem. (Use straight-line depreciation and amortization and take a full year's depreciation on the equipment sold to Son in 2018.) P7-2 Four-year Income schedule (several Intereumpany transactions) lmereompany transactions between Pop Corporation and Son Corporation, its 80 percentowed subsidi- ary, fnom January 2016, when Pop acquired its controlling interest, to December 31, 2019, are summa- rized as follows: 2016 Pop sold inventory items that cost $30,000 to Son for $40,000. Son sold $30,000 of these inventory items in 2016 and $10,000 of them in 2017. 201'? Pop sold inventory items that cost $15,000 to Son for $20,000. All of these items were sold by Son during 2013. 2013 Son sold land with a book value of $20,000 to Pop at its fair market value of $22,500. This land is to be used as a future plant site by Pop