E5-3 Downstream sales 1. The separate incomes of Pop Corporation and Son Corporation, a 100 percent-owned subsidiary of Pop, for 2017 are $2,000 and $1,000, respectively. Pop sells all of its output to Son at 150 percent of Pop's cost of production. During 2016 and 2017, Pop's sales to Son were $9,000 and $7,000, respectively. Son's inventory at December 31, 2016, included $3,000 of the merchandise acquired from Pop, and its December 31, 2017, inventory included $2,400 of such merchandise. Assume Son sells the Inventory purchased from Pop in the following year. A consolidated income statement for Pop Corporation and Subsidiary for 2017 should show controlling inter- est share of consolidated net income of: a $2,200 b $2,800 C $3,000 d $3,200