Problem 4 (21.25 Points) The balance sheet of Pop Corporation and Son Corporation on December 31, 2016, one year after a

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Problem 4 21 25 Points The Balance Sheet Of Pop Corporation And Son Corporation On December 31 2016 One Year After A 1 (53.65 KiB) Viewed 67 times

Problem 4 (21.25 Points) The balance sheet of Pop Corporation and Son Corporation on December 31, 2016, one year after affiliation, contain the following: Separate Balance Sheets December 31, 2016 Pop Son Assets Current assets Cash Accounts receivable Dividend receivable Other current assets Total current assets Plant assets Less: Accumulated depreciation Total plant assets Investment in Son Total assets $ 55,00030.000 88,000 20.000 14,000 41,000 36.000 198,000 86,000 150,000 100,000 (40,000) (26.000) 110,000 74,000 104,000 $412,000 $ 160,000 Liabilites and Stockholder' Equity Currents liabilities Accounts payable $ 60,000 $ 30.000 Other current liabilities 40.000 10,000 Dividend payable 20,000 Total current liabilities 100 000 60,000 Stockholders' equity Capital stock 200.000 60,000 Retained earnings 112.000 40,000 Total stockholders's equity 312.000 100,000 Total liabilities and stockholders's equity $412,000 160.000 Instructions a. Prepare the consolidated balance sheet after date of acquisition under each of the following assumptions. 1. Pop acquired 70% interest of Son for $90,000 on January 1, 2016, when Son's stockholders' equity at book value was $120,000. 2. The accounts payable of Son include $10.000 owed to Pop. 3. During 2016 Son had income of $40,000 and declared $20,000 in dividends. b. Prepare the journal entry to record the Adjustments and elimination