E 5-12 Consolidated income statement (intercompany sales correction) The consolidated income statement of Pop and Son for 2016 was as follows (in thousands): Sales $5,520 Cost of sales (3,680) Operating expenses (640) Income to 20 percent noncontrolling interest in Son (160) Consolidated net income $1.040 After the consolidated income statement was prepared, it was discovered that intercompany sales transactions had not been considered and that unrealized profits had not been eliminated Information concerning these items follows (in thousands): 2015 Sales-Pop to Son 2016 Sales-Son to Pop Cost S640 360 Selling Price $720 480 Unsold at Year-End 25% 40 REQUIRED: Prepare a corrected consolidated income statement for Pop and Son for the year ended Decem- ber 31, 2016