P$4-2$ Workpapers and financial statements in year of acquisition

Pop Corporation acquired $70$ percent of the outstanding voting stock of Son Corporation for $$182,000$ cash on January $1,2016,$ when Son's stockholders' equity was $$260,000.$ All the assets and liabilities of Son were stated at fair values $($equal to book values$)$ when Pop acquired its $70$ percent interest.

Financial statements of the two corporations at and for the year ended December $31,2016,$ are summarized as follows $($in thousands$)$:

Pop Son

Combined Income and Retained Earnings

Statements for the Year Ended December $31$

Siles

Income from Son

Cost of goods sold

Operating expenses

Net income

Add: Retained earnings January $1$

Deduct: Dividends

Retained earnings December $31$

Balance Sheet at December $3I$

Cash

Receivables $-$ net

Inventories

Plant and equipment$-$net

Imestment in Son

Total aksets

Accounts payable

Other liabilities

Capital stock, $$10$ par

Other paid$-$in capital

Retained earnings

Total equities

$\backslash$table$[[$$$1240,$$$400$