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Exercise 2: The balance sheets of Pop and Son Corporations at December 31, 2016, one year after acquisition, contain the following (in thousands): Pop acquired

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Exercise 2: The balance sheets of Pop and Son Corporations at December 31, 2016, one year after acquisition, contain the following (in thousands): Pop acquired 100% of Son company on January 1nt,2016 for $90,000, when Son's stockholders' equity at book value was $80,000. The accounts payable of Son include $10,000 owed to Pop. During 2016 Son had income of $40,000 and declared $20,000 in dividends. 1-Prepare the eliminating and adjusting entries. 2-Prepare the consolidated balance sheet

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