Question
The stockholders equity of Son Corporation at December 31, 2015, 2016, and 2017, is as follows (in thousands): December 31, 2015 2016 2017 Capital stock,
The stockholders equity of Son Corporation at December 31, 2015, 2016, and 2017, is as follows (in thousands):
December 31, 2015 2016 2017
Capital stock, $10 par $200 $200 $200
Retained earnings 80 160 220
$280 $360 $420
Son reported income of $80,000 in 2016 and paid no dividends. In 2017, Son reported net income of $80,000 and declared and paid dividends of $10,000 on May 1 and $10,000 on November 1. Income was earned evenly in both years. Pop Corporation acquired 4,000 shares of Son common stock on April 1, 2016, for $64,000 cash and another 8,000 shares on July 1, 2017, for $164,000. Any fair value/book value differential is goodwill.
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Pops income from Son for 2016 and 2017
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Noncontrolling interest at December 31, 2017
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Preacquisition income in 2017
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Balance of the Investment in Son account at December 31, 2017
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