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P2-5 Prepare an allocation schedule; compute income and the investment balance Pop Corporation paid $1,680,000 for a 30 percent interest in Son Corporation's outstanding voting stock on January 1, 2016. The book values and fair values of Son's assets and liabilities on January 1, along with amortization data, are as follows (in thousands): Book Value Fair Value S 400 400 Cash Accounts receivable-net Inventories (sold in 2016) Other current assets Land Buildings-net (10-year remaining life) Equipment-net (7-year remaining life) 700 1,000 700 1,200 200 2001.700 900 1,500 2,000 $6,700 $ 800800 500 $5,900 Total assets Accounts payable Other current liabilities Bonds payable (due January 1, 2021) Capital stock, $10 par Retained eamings Total equities 200 1,100 200 1,000 3,000 900 Son Corporation reported net income of $1,200,000 for 2016 and paid dividends of $600,000. REQUIRED 1. Prepare a schedule to allocate the investment fair values/book value differentials relating to Pop's invest- ment in Son. 2. Calculate Pop's income from Son for 2016. 3. Determine the balance of Pop's Investment in Son account at December 31.2016