Pop Corporation acquired 70 percent of the outstanding voting stock of Son Corporation for $182,000 cash on January 1, 2016, when Son's stockholders' equity was $260,000. All the assets and liabilities of Son were stated at fair values (equal to book values) when Pop acquired its 70 percent interest.

Financial statements of the two corporations at and for the year ended December 31, 2016, are summarized as follows (in thousands):

Required
1. Prepare consolidation work-papers for Pop Corporation and Subsidiary for 2016.
2. Prepare a consolidated income statement and a consolidated balance sheet for Pop Corporation and Subsidiary?

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Pop Combined Income and Retained Earnings Statements for the Year Ended December 3I Sales Income from Son Cost of goods sold Operating expenses $1,240 42 (800) (308) $400 (260) (80) Net income Add: Retained earnings January 1 Deduct: Dividends 260 (120) $314 (40) S 64 Retained earnings December 31 Balance Sheet at December 31 Cash Receivables-net Inventories Plant and equipment-net Investment in Son 182 240 96 $ 60 120 80 140 196 Total assets $400 Accounts payable Other liabilities Capital stock, $10 par Other paid-in capital Retained earnings $ 120 600 314 $72 48 200 16 64 Total equities $1,194