Pop Corporation acquired a 70 percent interest in Son Corporation on April 1, 2016, when it purchased 14,000 of Son's 20,000 outstanding shares in the open market at $13 per share. Additional Costs of acquiring the shares consisted of $10,000 legal and consulting fees. Son Corporation's balance sheets on January 1 and April 1, 2016 are summarized as follows (in thousands)

	January 1 (per books)	April 1 (per books)	April 1 (Fair Values)
Cash	40	45	45
Inventories	35	60	50
Other current assets	25	20	20
Land	30	30	50
Equipment-net	100	95	135
Total assets	230	250	300
Account payable	45	40	40
Other liabilities	15	20	20
Capital Stock, $5 par	100	100
Retained earnings January 1	70	70
Current earnings		20
Total liabilities and equity	230	250

Additional Information

1. The overvalued inventory items were sold in September 2016.

2. The undervalued items of equipment had a remaining useful life of four years on April 1, 2016.

3. Son's net income for 2016 was $80,000 ($60,000 from April to December 31st, 2016)

4. On December 1, 2016, Son declared dividends of $2 per share, payable on January 10, 2017.

5. Any unidentified assets of Son are not amortized.

Requirements

1. Prepare a schedule showing how the difference between Pop's investment cost and book value acquired should be allocated to identifiable and/or unidentifiable assets.

2. Calculate Pop's investment income from Son for 2016.

3. Determine the balance of Pop's investment in Son account on December 31, 2016.