P9-7 Computations and entries (parent stock mutually held) Pop Corporation purchased an 80 percent interest in Son Corporation for $170,000 on January 1, 2016, when Son's stockholders' equity was $200,000. The excess of fair value over book value is due to goodwill. At December 31, 2017, the balance of Pop's Investment in Son account is $208,000, and the stockholders' equity of the two corporations is as follows: Pop Son Capital stock $600,000 $150,000 Retained earnings 200,000 100,000 Total $800,000 $250,000 On January 2, 2018, Son acquires a 10 percent interest in Pop for $80,000. Earnings and divi- dends for 2018 are: Separate earnings Dividends Pop $100,000 50,000 Son $40,000 20,000 REQUIRED 1. Compute controlling and noncontrolling interest shares of consolidated net income for 2018 using the conventional approach. 2. Prepare journal entries to account for Pop's investment in Son for 2018 under the equity method (conven- tional approach). 3. Prepare journal entries on Son's books to account for its investment in Pop under the equity method (con- ventional approach). 4. Compute Pop's and Son's net incomes for 2018. 5. Determine the balances of Pop's and Son's investment accounts on December 31, 2018. 6. Determine the total stockholders' equity of Pop and Son on December 31, 2018. 7. Compute the noncontrolling interest in Son on December 31, 2018. 8. Prepare the adjusting and eliminating entries needed to consolidate the financial statements of Pop and Son for the year ended December 31, 2018