Question

ay in Protected View Enable Editing 2 Ejercicios de práctica 1. Correction of consolidated net income Pop Corporation paid $1,800,000 for a 90 percent interest in Son Corporation on January 1, 2019; Son's total book value was $1,800,000. The excess was allocated as follows: 560,000 to undervalued equipment with a three-year remaining useful life and $140,000 to goodwill. The income statements of Pop and Son for 2019 are summarized as follows (in thousands): Pop Son Sales $4.000 1,600 Income from Son 180 Cost of sales (2.000) (800) Depreciation expense (400) (240) Other expenses (800) (360) Net income S980 $200 REQUIRED: 1. Calculate the goodwill that should appear in the consolidated balance sheet of Pop and Subsidiary at December 31, 2019 2. Calculate consolidated net income for 2019,