3.8

E3-8 Calculate consolidated balance sheet amounts with goodwill and noncontrolling interest Pop Corporation acquired an 80 percent interest in Son Corporation on January 2, 2016, for $1,400,000. On this date the capital stock and retained earnings of the two companies were as follows (in thousands): Pop Son Capital stock $3,600 $1,000 Retained earnings 1,600 200 The assets and liabilities of Son were stated at fair values equal to book values when Pop acquired its 80 percent interest. Pop uses the equity method to account for its investment in Son. Net income and dividends for 2016 for the affiliated companies were as follows (in thousands): Pop Son Net income $600 $180 Dividends declared 360 100 Dividends payable December 31, 2016 180 50 REQUIRED: Calculate the amounts at which the following items should appear in the consolidated balance sheet on December 31, 2016. 1. Capital stock 2. Goodwill 3. Consolidated retained earnings 4. Noncontrolling interest 5. Dividends payable