Pop Corporation acquired an 70% interest in Son Corporation for $332,500 on January 1, 20X4 when Son's stockholders' equity consisted of $200,000 capital stock and $70,000 retained earnings. The excess cost over book value acquired was allocated to inventory that was overvalued by $40,000 and sold in 20X4, to equipment that was undervalued by $80,000 and to goodwill. The undervalued equipment had a 4-year remaining useful life.

Pop regularly sells inventory to Son at 120% of cost. Intercompany sales were $190,000 in 20X5 and $120,000 in 20X6. Son's inventory included $36,000 of this merchandise at 12/31/20X5 and $24,000 of this merchandise at 12/31/20X6.

On April 1, 20X4 Son sold Pop a building for $120,000. Son had originally paid $150,000 for the building and had accumulated depreciation as of the date of sale of $90,000. Pop is depreciating the building at a rate of $20,000 per 12-month period.

During 20X4 Son sold land for which it had paid $40,000 to Pop for $58,000. Pop resold the land to outsiders during 20X6 for $72,000.

Prepare the Realization and Amortization Schedule

Realization and Amortization Schedule:
Description	Balances at 1/1/20X4	Amortizations/ Realizations 20X4	Amortizations/ Realizations 20X5	Balances at 1/1/20X6	Amortizations/ Realizations 20X6	Balances at 12/31/20X6
TOTALS
SBV/NI
Adjusted SBV (FV)/NI
NCI Share
Parent Share
Adjusted Parent Share