P6-9 Analyze provided separate company and consolidated statements Separate company and consolidated financial statements for Pop Corporation and its only subsidiary. Son Corporation, for 2017 are summarized here. Pop acquired its interest in Son on January 1, 2016, at a price in excess of book value, which was due to an unrecorded patent. POP CORPORATION AND SUBSIDIARY SEPARATE COMPANY AND CONSOLIDATED FINANCIAL STATEMENTS AT AND FOR THE YEAR ENDED DECEMBER 31, 2017 (IN THOUSANDS) Income Statement Sales Income from Som Gain on equipment Cost of sales Depreciation expense Other expenses Noncontrolling interest share Controlling share of net income Pop Consolidated $ 500 5300 5.716 17,4 20 (200) (150) (275) 160) (95) (77) (141) (46) $ 200.4 5.50 2004 Pop Retained Earnings Statement Retained earnings Net income Dividends $ 250 2004 (100) Retained earnings $3504 5140 Balance Sheet Cash $ 21.1 $35 Accounts receivable-net 50 Dividends receivable 13.5 Inventories 90 Other current assets 70 Land 50 Buildings-net 100 Equipment-net 300 Investment in Son 305.8 Patents Total assets Accounts payable $1.000.4 Dividends payable Other liabilities Capital stock. $10 par Retained earnings Noncontrolling interest December 31, 2017 Total equities $ 60 90 500 3504 $1.0004 1:| 1:|:: Intercompany Profit Transactions-Plant Assets $120 Consolidated $250 2004 (30) (100) 3504 $ 56.1 70 136 110 70 150 550 $500 $1.174.1 $100 15 500 350.4 37 $1.174.1 REQUIRED: Answer the following questions about the financial statements of Pop and Son 1. What is Pop's percentage interest in Son Corporation? Provide a computation to explain your answer. 2. Does Pop use a one-line consolidation in accounting for its investment in Son? Explain your answer 3. Were there intercompany sales between Pop and Son in 2017? If so, show computations 4. Are there unrealized inventory profits on December 31, 2017? If so, show computations 5. Provide computations to explain the difference between the combined separate cost of sales and consoli dated cost of sales. 6. Explain the difference between combined separate and the consolidated "equipment-net" line item by reconstructing the workpaper entry(s) that was (were) apparently made 7. Are there intercompany receivables and payables? If so, identify them and state the amounts 8. Beginning with the noncontrolling interest at January 1, 2017, provide calculations of the $37.200 - trolling interest at December 31, 2017 9. What was the amount of patents at December 31, 2016 Show computations 10. Provide computations to explain the $305,800 Investment in Son account balance on December 31, 2017. 241