this question is about : Adjusting investment account and determine income when additional investments qualifies for equity method of accounting

Summary balance sheet and income information for Son Company for two years is as follows (in thousands):

	Jan 1, 2016	Dec 31, 2016	Dec 31, 2017
Current assets	50	60	75
Plant assets	200	240	250
Total	250	300	325
Liabilities	40	50	50
Capital stock	150	150	150
Retained earnings	60	100	125
Total	250	300	325

Net income for 2016: 100

Dividends for 2016: 60

Net income for 2017: 50

Dividends for 2017: 25

On Jan 2, 2016, Pop Co. purchases 10 percent of Son Co. for $25,000 cash, and it accounts for its investment (classified as available for sale security) in Son using the fair value method. On Dec 31, 2016 the fair value of all of Son's stock is $500,000. On Jan 2, 2017, Pop purchases an additional 10 percent interest in Son stock for $50,000 and adopts the equity method to account for the investment. The fair value of Son's assets and liabilities were equal to the book values at the time of both stock purchases.

1.) Prepare the journal entry to adjust the Investment in Son account to the equity method on Jan 2, 2017 and determine Pop's income from Son in 2017