P2-5 Prepare an allocation schedule; compute income and the investment balance Pop Corporation paid $1,680,000 for a 30 percent interest in Son Corporation's outstanding voting stock on January 1, 2016. The book values and fair values of Sons assets and liabilities on January 1, along with amortization data, are as follows (in thousands): Book Value Fair Value Cash $ 400 $ 400 Accounts receivablenet 700 700 Inventories (sold in 2016) 1,000 1,200 Other current assets 200 200 Land 900 1,700 Buildings-net (10-year remaining life) 1,500 2,000 Equipment-net (7-year remaining life) 1,200 500 Total assets $5,900 $6,700 Accounts payable $ 800 $ 800 Other current liabilities 200 200 Bonds payable (due January 1, 2021) 1,000 1,100 Capital stock, $10 par 3,000 Retained earnings 900 Total equities $5,900 Son Corporation reported net income of $1,200,000 for 2016 and paid dividends of $600,000. REQUIRED 1. Prepare a schedule to allocate the investment fair values/book value differentials relating to Pop's invest- ment in Son. 2. Calculate Pop's income from Son for 2016. 3. Determine the balance of Pop's Investment in Son account at December 31, 2016