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Pop Corporation acquired an 80 percent interest in Son Corporation for $24000 on January 1 2016 when Son s stockholders equity consisted of

Pop Corporation acquired an 80 percent interest in Son Corporation for $240,000 on January 1, 2016, when Son s stockholders equity consisted of $200,000 capital stock and $25,000 retained earnings. The excess fair value over book value acquired was assigned to plant assets that were undervalued by $50,000 and to goodwill. The undervalued plant assets had a four-year useful life. Additional Information 1. Pop s account receivable includes $5,000 owed by Son. 2. Son mailed its check for $20,000 to Pop on December 30, 2017, in settlement of the advance. 3. A $10,000 dividend was declared by Son on December 30, 2017, but was not recorded by Pop. 4. Financial statements for Pop and Son Corporations for 2017 follow (in thousands): Required: Prepare consolidation work-papers for Pop Corporation and Subsidiary for 2017?

Apr 18 2020 View more View Less

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