Case 3: Pop Corporation acquired 30 percent of Son Corporation's common stock on January 1, 2016, for $420,000 cash. The stockholders equity of Son at this time consisted of $300.000 capital sock and $100,000 retained carmings. The difference between the fair value of Send the underlying equity squired in Son was due to a $25.000 undervaluation of Son's inventory, a $50,000 undervation of Son's equipment, and goodwill The undervalued Inventory was sold by son during 2016, and the undervloed equipment had a remaining useful life of five years. Straight-line depreciation is used. See owed Pop $8.000 counts payable at December 31, 2016. The separate financial statements of Pop and Son Corporations at and for the year ended December 31, 2016, are as follows (in thousands): 08 Adjustments and Consolidated Pop Bee Elisitations Sustenta Income Statement Sales 400 s 220 Income from on 36 Coat of sales 160 Depreciation expense 30 60- Other expenses 514 204 Consolidated NI Noncontrolling share Controlling share of NI $ 150 Retained Earnings Retained earnings - Top Retained earnings-son Controlling share of 11 Dividends $ 100 304 145 Retained earnings - Dec 3173 262 Balance Sheet 13 59 56 30 30 16 Trade receivable at Dividends receivable Inventories Land Buildings - DOC Equipment Det Investment in Son Goodwill 30 130 400 424 60 50 100 200 . 5 100 20 Accounts payable Dividends payable Other liabilities Capital stock Retained earnings 3 20 200 100 600 2257 152.135 300 14 Noncontrolling interest January 1 Noncontrolling interest December 31 Case 3: Pop Corporation acquired 30 percent of Son Corporation's common stock on January 1, 2016, for $420,000 cash. The stockholders equity of Son at this time consisted of $300.000 capital sock and $100,000 retained carmings. The difference between the fair value of Send the underlying equity squired in Son was due to a $25.000 undervaluation of Son's inventory, a $50,000 undervation of Son's equipment, and goodwill The undervalued Inventory was sold by son during 2016, and the undervloed equipment had a remaining useful life of five years. Straight-line depreciation is used. See owed Pop $8.000 counts payable at December 31, 2016. The separate financial statements of Pop and Son Corporations at and for the year ended December 31, 2016, are as follows (in thousands): 08 Adjustments and Consolidated Pop Bee Elisitations Sustenta Income Statement Sales 400 s 220 Income from on 36 Coat of sales 160 Depreciation expense 30 60- Other expenses 514 204 Consolidated NI Noncontrolling share Controlling share of NI $ 150 Retained Earnings Retained earnings - Top Retained earnings-son Controlling share of 11 Dividends $ 100 304 145 Retained earnings - Dec 3173 262 Balance Sheet 13 59 56 30 30 16 Trade receivable at Dividends receivable Inventories Land Buildings - DOC Equipment Det Investment in Son Goodwill 30 130 400 424 60 50 100 200 . 5 100 20 Accounts payable Dividends payable Other liabilities Capital stock Retained earnings 3 20 200 100 600 2257 152.135 300 14 Noncontrolling interest January 1 Noncontrolling interest December 31
