*that's all i got from the textbook,

P8-3 Sale of an interest during accounting period, upstream building sale Piero SAA was a 90 percent-owned subsidiary of Isac SAA acquired for $3,600,000 on January 1, 2014. The total net assets for Piero SAA at the acquisition date were $3,800,000. The book value identifiable assets and liabilities of Piero SAA is the same with the fair value. The trial balance of both companies for the year ended 2014 is as follows (in thousands): Isac SAA Debits Cash Accounts receivable Inventory Land Equipment Investment in Piero SAA Cost of sales Other expenses Dividends Total $900 200 1,640 2,100 3,000 2,835 5,800 400 200 $ 17,075 Piero SAA $400 700 700 2.800 1,400 0 2.800 700 200 $ 9,700 Credits Accounts payable Common stock Additional-paid in capital Retained Earnings Sales Income from Piero SAA Total $1,900 5,000 50 2.500 7,400 225 $ 17,075 $1,400 2.000 0 1.800 4.500 0 $9.700 294 CHAPTER 8 ADDITIONAL INFORMATION 1. On March 31, 2014, Isac SAA sold its 20 percent of ownership in Piero SAA for $900,000. 2. On July 1, 2013, Piero SAA sold equipment to Isac SAA with a profit of $500,000. The equipment has a remaining useful life of 5 years and the only dividend declared during the year by Piero SAA was on August 1, 2014. 3. Piero SAA income and expenses occurred proportionately during the year. REQUIRED: Prepare a workpaper to consolidate the financial statement of Isac SAA and Subsidiary for the year ended December 31, 2014. P8-4 Reduction of interest owned under three options Pop Corporation owns 300,000 of 360,000 outstanding shares of Son Corporation, and its $8,700,000 Investment in Son account balance on December 31, 2016, is equal to the underlying equity interest in Son. Son's stockholdersequity at December 31, 2016, is as follows (in thousands): Common stock, $10 par, 500,000 shares authorized, 400,000 shares issued, of which 40,000 are treasury shares $ 4,000 Additional paid-in capital 2,500 Retained earnings 5,500 12,000 Less: Treasury shares at cost 1,560 Total stockholder's equity $10,440 Because of a cash shortage, Pop decided to reduce its ownership interest in Son from a 5/6 interest to a 3/4 interest and is considering the following options: Option 1. Sell 30,000 of the 300,000 shares held in Son. Option 2. Instruct Son to issue 40,000 shares of previously unissued stock to the public. Option 3. Instruct Son to reissue the 40,000 shares of treasury stock to the public. Assume that the shares can be sold at the current market price of $50 per share under each of the three options and that any tax consequences can be ignored. Pop's stockholders' equity at Decem- ber 31, 2016, consists of $10,000,000 par value of common stock, $3,000,000 additional paid-in capital, and $7,000,000 retained earnings. REQUIRED: Compare the consolidated stockholders' equity on January 1, 2017, under each of the three options. (Hint: Prepare journal entries on Pop's books as an initial step to your solution.) P8-3 Sale of an interest during accounting period, upstream building sale Piero SAA was a 90 percent-owned subsidiary of Isac SAA acquired for $3,600,000 on January 1, 2014. The total net assets for Piero SAA at the acquisition date were $3,800,000. The book value identifiable assets and liabilities of Piero SAA is the same with the fair value. The trial balance of both companies for the year ended 2014 is as follows (in thousands): Isac SAA Debits Cash Accounts receivable Inventory Land Equipment Investment in Piero SAA Cost of sales Other expenses Dividends Total $900 200 1,640 2,100 3,000 2,835 5,800 400 200 $ 17,075 Piero SAA $400 700 700 2.800 1,400 0 2.800 700 200 $ 9,700 Credits Accounts payable Common stock Additional-paid in capital Retained Earnings Sales Income from Piero SAA Total $1,900 5,000 50 2.500 7,400 225 $ 17,075 $1,400 2.000 0 1.800 4.500 0 $9.700 294 CHAPTER 8 ADDITIONAL INFORMATION 1. On March 31, 2014, Isac SAA sold its 20 percent of ownership in Piero SAA for $900,000. 2. On July 1, 2013, Piero SAA sold equipment to Isac SAA with a profit of $500,000. The equipment has a remaining useful life of 5 years and the only dividend declared during the year by Piero SAA was on August 1, 2014. 3. Piero SAA income and expenses occurred proportionately during the year. REQUIRED: Prepare a workpaper to consolidate the financial statement of Isac SAA and Subsidiary for the year ended December 31, 2014. P8-4 Reduction of interest owned under three options Pop Corporation owns 300,000 of 360,000 outstanding shares of Son Corporation, and its $8,700,000 Investment in Son account balance on December 31, 2016, is equal to the underlying equity interest in Son. Son's stockholdersequity at December 31, 2016, is as follows (in thousands): Common stock, $10 par, 500,000 shares authorized, 400,000 shares issued, of which 40,000 are treasury shares $ 4,000 Additional paid-in capital 2,500 Retained earnings 5,500 12,000 Less: Treasury shares at cost 1,560 Total stockholder's equity $10,440 Because of a cash shortage, Pop decided to reduce its ownership interest in Son from a 5/6 interest to a 3/4 interest and is considering the following options: Option 1. Sell 30,000 of the 300,000 shares held in Son. Option 2. Instruct Son to issue 40,000 shares of previously unissued stock to the public. Option 3. Instruct Son to reissue the 40,000 shares of treasury stock to the public. Assume that the shares can be sold at the current market price of $50 per share under each of the three options and that any tax consequences can be ignored. Pop's stockholders' equity at Decem- ber 31, 2016, consists of $10,000,000 par value of common stock, $3,000,000 additional paid-in capital, and $7,000,000 retained earnings. REQUIRED: Compare the consolidated stockholders' equity on January 1, 2017, under each of the three options. (Hint: Prepare journal entries on Pop's books as an initial step to your solution.)