Pop Corporation purchased 480,000 shares of Son Corporations common stock (an 80 percent interest) for $10,600,000 on January 1, 2016. The $1,000,000 excess of investment fair value over book value acquired was attributed to goodwill.

On January 1, 2018, Son sold 200,000 previously unissued shares of common stock to the public for $30 per share. Sons stockholders equity on January 1, 2016, when Pop acquired its interest, and on January 1, 2018, immediately before and after the issuance of additional shares, was as follows (in thousands):

January 1, 2016 January 1, 2018 Before Issuance January 1, 2018 After Issuance

Common stock, $10 par $ 6,000 $ 6,000 $ 8,000

Other paid-in capital 2,000 2,000 6,000

Retained earnings 4,000 5,000 5,000

Total $12,000 $13,000 $19,000

Required

Calculate the balance of Pops Investment in Son account on January 1, 2018, before the additional stock issuance.

Determine Pops percentage interest in Son on January 1, 2018, immediately after the additional stock issuance.

Prepare a journal entry on Pops books to adjust for the additional share issuance on January 1, 2018, if gain or loss is not recognized.