E 4-2 Consolidated statement items with equity method Pop Corporation purchased 80 percent of the outstanding voting common stock of Son Corporation on Januar 2016, for $1,200,000 cash. Son's balance sheets on this date and on December 31, 2016, are as follows: SON CORPORATION BALANCE SHEETS January 2 December 31 Inventory $ 200,000 $ 80,000 Other current assets 200,000 320,000 Plant assets--net 800,000 880,000 Total assets $1,200,000 $1,280,000 Liabilities $ 200,000 $ 240,000 Capital stock 600,000 600,000 Retained earnings 400,000 440,000 Total equities $1,200,000 $1,280,000 ADDITIONAL INFORMATION 1. Pop uses the equity method of accounting for its investment in Son. 2. Son's 2016 net income and dividends were $280,000 and $240,000, respectively. 3. Son's inventory, which was sold in 2016, was undervalued by $50,000 at January 2, 2016. REQUIRED 1. What is Pop's income from Son for 2016? 2. What is the noncontrolling interest share for 2016? 3. What is the total noncontrolling interest at December 31, 2016? 4. What will be the balance of Pop's Investment in Son account at December 31, 2016, if investment income from Son is $200,000? Ignore your answer to 1. 5. What is consolidated net income for Pop Corporation and Subsidiary if Pop's net income for 2016 $720,800? (Assume investment income from Son is $200,000, and it is included in the $720,800.)