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 Dec 31

Sales 12040 400

Income from Son 42

Cost of goods sold -800 -260

Operating expenses -308 -80

Net income 174 60

Add: Retained earnings Jan1 260 44

Deduct: Dividends -120 -40

Retained earnings Dec 31 314 64

Ballannce Sheet at Dec 31

Cash 182 60

Receivables-net 240 120

Inventories 96 80

Plant and equipment-net 480 140

Investment in Son 196

Total assets 1194 400

Accounts payable 120 72

other liabilities 80 48

Capital stock $10 par 600 200

Other pain-in capital 80 16

Total equities 314 64

Total equities 1194 400

1) Prepare prelimary calculations to see if there are any excess of cost over book value.

2) Prepare Income and Dividends calculations

3) Calculate the investment balance of Son at 12-31-2016

4) Do journal entry needed for consolidated worksheet

5) Complete the consolidated worksheet