On January 1, 2016, Pop Corporation made the following investments:
1. Acquired for cash, 80 percent of the outstanding common stock of Son Corporation at $280 per share.
The stockholders' equity of Son on January 1, 2016, consisted of the following:
Common stock, par value $100 ......................... $200,000
Retained earnings ........................................... 80,000
2. Acquired for cash, 70 percent of the outstanding common stock of Sam Corporation at $160 per share. The stockholders' equity of Sam on January 1, 2016, consisted of the following:
Common stock, par value $40 .......................... $240,000
Capital in excess of par value ............................. 80,000
Retained earnings ........................................ 160,000
3. After these investments were made, Pop was able to exercise control over the operations of both companies.
An analysis of the retained earnings of each company for 2016 is as follows:

Required
1. What entries should have been made on the books of Pop during 2016 to record the following?
a. Investments in subsidiaries
b. Subsidiary dividends received
c. Parent's share of subsidiary income or loss
2. Compute the amount of non-controlling interest in each subsidiary's stockholders' equity at December 31, 2016.
3. What amount should be reported as consolidated retained earnings of Pop Corporation and subsidiaries as of December 31, 2016?
4. Compute the correct balances of Pop's Investment in Son and Investment in Sam accounts at December 31, 2016, before consolidation?

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Pop Son Sam Balance January 1 Net income (loss) $960,000 80,000 $160,000 418,400 144,000 (48,000) (ICO,0U0) (A00 CN) Cash dividends paid Balance December 31 $1,218,400 $160,000 76,000