Pop Corporation and its 70 percent-owned subsidiary, Son Corporation, have pretax operating incomes for 2016 as follows (in thousands):

Pop received $280,000 dividends from Son during 2016. A previously unrecorded patent from Pop's investment in Son is being amortized at a rate of $50,000 per year (the same time horizon is used for both book and tax purposes). On January 1, 2016, Pop sold equipment to Son at a $200,000 gain. Son is depreciating the equipment at a rate of 20 percent per year. A flat 34 percent tax rate is applicable to both companies.
REQUIRED:
Prepare a consolidated income statement for Pop Corporation and Subsidiary for 2016. (Assume no deferred tax balance on January 1, 2016.)

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Pop $8,000 Son Sales $4,000 Gain on equipment Cost of sales (5,000) (1,800) $1,400 (2,000) (1,200) $ 800 Other expenses Pretax income