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 $400 Combined Income and Retained Earnings Statements for the Year Ended December 31 Sales 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 31 Cash Receivablesnet Inventories Plant and equipment-net Investment in Son Total assets $1,240 42 (800) (308) 174 260 (120) $ 314 (260) (80) 60 44 (40) $ 64 $ 182 240 96 480 196 $1,194 $ 60 120 80 140 $400 Accounts payable Other liabilities Capital stock, $10 par Other paid-in capital Retained earnings Total equities $ 120 80 600 80 314 $1,194 $ 72 48 200 16 64 $400 REQUIRED 1. Prepare consolidation workpapers for Pop Corporation and Subsidiary for 2016. 2. Prepare a consolidated income statement and a consolidated balance sheet for Pop Corporation and Subsidiary