The pretax operating incomes of Pop Corporation and Son Corporation, its 70 percent-owned subsidiary, for 2011 are as follows (in thousands):

ADDITIONAL INFORMATION1. Pop received $280,000 dividends from Son during 2011.2. Goodwill from Pop's investment in Son is not amortized.3. Pop sold equipment to Son at a gain of $500,000 on January 1, 2011. Son is depreciating the equipment at a rate of 20% per year.4. A flat 34% tax rate is applicable.5. Pop provides for income taxes on undistributed income from Son.REQUIRED1. Determine the separate income tax expenses for Pop and Son.2. Determine Pop's income from Son on an equity basis.3. Prepare a consolidated income statement for Pop Corporation and Subsidiary for the year ended December 31,2011

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Pop Son $8,000 500 (5,000) (2.100) $4,000 Sales Gain on equipment Cost of sales Other expenses Pretax income (excluding Pop's income from Son) (2,000) (1,200) $ 800 $1,400