Pop Corporation acquired 70 percent of the outstanding voting stock of Son Corporation for $182,000 cash on January 1, 2016, when Sons 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 Jan 1	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

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 Subsidiar