Pop Corporation purchased an 80 percent interest in Son Corporation for $1,200,000 on January 1, 2017, at which time Son's stockholders' equity consisted of $1,000,000 common stock and $400,000 retained earnings. The excess fair value over book value was goodwill. Comparative income statements for the two corporations for 2018 are as follows: Pop Son Sales $2,000 $1,000 Income from Son 224 Cost of sales (800) (500) Depreciation expense (260) (80) Other expenses (180) (120) Net income $ 984 $ 300 Dividends of Pop and Son for all of 2018 were $600,000 and $200,000, respectively. During 2017 Son sold inventory items to pop for $160,000. This merchandise cost Son $100,000, and one-third of it remained in Pop's December 31, 2017, inventory. During 2018 Son's sales to Pop were $180,000. This merchandise cost Son $120,000, and one-half of it remained in Pop's December 31, 2018, inventory. REQUIRED: Prepare a consolidated income statement for Pop Corporation and Subsidiary for the year ended December 31, 2018. t t + Pop Corp. and Subsidiary, Consolidation Workpaper, December 31, 2018- ($ in thousands) Adjustments/ Eliminations- Account Pop- Son Debit- Credit Consolidated Sales 2,000 1,0004 Income from Son 232*4 Cost of sales- (800)4 (500) Depreciation expense (260) (80) Other expenses (180) (120) --- Net income 992* 3004 t t *(Dr. Nancy Note: the corrected calculation of Income from Son (in thousands) = [($300 + $ 20 - $30) x 80%] = $232) t