PopCorporation acquired a 90 percent interest in Son Corporation's outstanding votingcommon stockon January 1, 2016, for $630,000 cash. The stockholders' equity of Son on this date consisted of $500,000 capital stock and $200,000 retained earnings. Thefinancial statements of Pop and Son at and for the year ended December 31, 2016, are summarized as follows (in thousands):

Pop Son Combined Income and Retained Earnings Statement for the Year Ended December 31, 2016 Sales $ 700 $ 500 Income from Son 70 Gain on land 10 Gain on equipment 20 Cost of sales (300) (300) Depreciation expense (90) (35) Other expenses (200) (65) Net income 200 TTO Beginning retained earnings 600 200 Dividends (100) (50) Retained earnings December 31 $ 700 $ 260 Balance Sheet at December 31, 2016 Cash $ 35 $ 30 Accounts receivable-net 90 110 Inventories 100 80 Other current items 70 40 Land 50 70 Buildings-net 200 150 Equipment-net 500 400 Investment in Son 655 $1,700 $ 880 Accounts payable $ 160 $ 50 Other liabilities 340 70 Capital stock, $10 par 500 500 Retained earnings 700 260 $1,700 $ 880