E 4-8 (APPENDIX B) Journal entries and computations (cost and equity methods) Son Corporation's outstanding capital stock (and paid in capital) has been $200,000 since the company was orga- nized in 2016. Son's retained earnings account since 2016 is summarized as follows: Dividends December 1, 2016 Dividends December 1, 2017 Dividends December 1, 2018 Dividends December 1, 2019 RETAINED EARNINGS $20,000 Net income 2016 20,000 Net income 2017 30,000 Net income 2018 40,000 Net income 2019 $50,000 70,000 10,000 60,000 Pop Corporation purchased 75% of Son's outstanding stock on January 1, 2018, for $300,000. During 2019. Pop's income, excluding the investment income from Son, was $90,000. REQUIRED 1. Prepare the journal entries, other than closing entries, on Pop's books to account for its investment in Son during 2019 under the cost method. 2. Determine the balance of Pop's Investment in Son account at December 31, 2019, under the cost method. 3. Prepare the journal entries, other than closing entries, on Pop's books to account for its investment in Son for 2019 under the equity method. 4. Determine the balance of Pop's Investment in Son account at December 31, 2019, under the equity method. 5. Compute consolidated net income for Pop Corporation and subsidiary for 2019