On January 2, 2018, Pops, Inc. acquired 48,000 shares of Son Corp. at the fair value of $10 per share. At January 2, 2018, Son has 240,000 shares of common stock issued and outstanding. During the year ended December 31, 2018, Son reported net income of $200,000. On December 26, 2018, Son declared and paid a dividend equal to $100,000. On December 31, 2018, the 48,000 shares of Son have a fair value equal to $12 per share. Required:a. Prepare the journal entries for Pops, Inc. for 2017 and 2018.b. At what amount is the investment in securities reported on the balance sheet under each of these methods at December 31, 2018? What is the total net income reported in 2018 under each of these methods?
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On January 2, 2018, Pops, Inc. acquired 48,000 shares of Son Corp. at the fair value of $10 per shar...
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