Computations (upstream and downstream sales)
Comparative income statements of Son Corporation for the calendar years 2016, 2017, and 2018 are as follows (in thousands):

	2016	2017	2018
Sales	48000	51000	57000
Cost of Sales	25200	26400	30000
Gross profit	22800	24600	27000
Operating expenses	18000	19200	22800
Net income	4800	5400	4200

1. Son was a 75 percentowned subsidiary of Pop Corporation throughout the 20162018 period. Pops separate income
(excludes income from Son) was $21,600,000, $20,400,000, and $24,000,000 in 2016, 2017, and 2018, respectively. Pop
acquired its interest in Son at its underlying book value, which was equal to fair value on July 1, 2015.
2. Pop sold inventory items to Son during 2016 at a gross profit to Pop of $2,400,000. Half the merchandise remained in
Sons inventory at December 31, 2016. Total sales by Pop to Son in 2016 were $6,000,000. The remaining merchandise was sold by Son in 2017.
3. Pops inventory at December 31, 2017, included items acquired from Son on which Son made a profit of $1,200,000.
Total sales by Son to Pop during 2017 were $4,800,000.
4. There were no unrealized profits in the December 31, 2018, inventories of either company.
5. Pop uses the equity method of accounting for its investment in Son.

Required:
1. Prepare a schedule showing Pops income from Son for the years 2016, 2017, and 2018.
2. Compute Pops net income for the years 2016, 2017, and 2018.
3. Prepare a schedule of consolidated net income for Pop Corporation and Subsidiary for the years 2016,
2017, and 2018, beginning with the separate incomes of the two affiliates and including non-controlling interest computations.