P2-3Computations for investee when excess allocated to inventories, building, and goodwillPop Company acquired a 30 percent interest in the voting stock of Son Company for $331,000 on January 1, 2016, when Son’s stockholders’ equity consisted of capital stock of $600,000 and retained earnings of $400,000. At the time of Pop’s investment, Son’s assets and liabilities were recorded at fair values, except for inventories that were undervalued by $30,000 and a building with a 10-year remaining useful life that was overvalued by $60,000. Son has income for 2016 of $100,000 and pays dividends of $50,000. Assume undervalued inventories are sold in 2016.REQUIRED1. Compute Pop’s income from Son for 2016. 2. What is the balance of Pop’s Investment in Son account at December 31, 2016? 3. What is Pop’s share of Son’s recorded net assets at December 31, 2016?