Home / Questions / Comparative income statements of Pop Corporation and Son Corporation for the year ended De...
Comparative income statements of Pop Corporation and Son Corporation for the year ended December 31, 2018, are as follows (in thousands): Additional Information 1. Son is a 90 percent-owned subsidiary of Pop, acquired by Pop for $1,620,000 on January 1, 2016, when Son s stockholders equity at book value was $1,400,000. 2. The excess of the cost of Pop s investment in Son over book value acquired was allocated $60,000 to undervalued inventories that were sold in 2016, $40,000 to undervalued equipment with a four-year remaining useful life, and the remainder to goodwill. Required: Prepare a consolidated income statement for Pop Corporation and Subsidiary for the year ended December 31, 2018?
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