Solution-What is the amount of consolidated net income for

What is the amount of consolidated net income for the year

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Reference no: EM132380202

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On January 1, 2019, Shell Corp. paid $1,000,000 cash to acquire 100% of the outstanding stock of Marlin Co. Marlin maintained separate incorporation. Shell used the equity method to account for the investment. The following information is available for Marlin's (the Subsidiary) assets, liabilities, and stockholders' equity accounts on January 1, 2019:

	Book Value	Farr Value
Current Assets	120,000	120,000
Land	72,000	192,000
Building (20 -year life)	200,000	200,000
Equipment (10- year life)	550,000	600,000
Current Liabilities	(24,000)	(24,000)
Long -Term Liabilities	(120,000)	(120,000)
Common Stock	(228,000)
Additional Paid-in Capital	(354,000)
Retained Earnings	(216,000)

*Parentheses desimate credit balances.

In 2019 Shell Corp.'s (the Parent) net income was $400,000, exclusive of the investment, and it paid dividends of $80,000. Marlin Co. (the Subsidiary) reported earnings of $200,000 and paid dividends of $48,000. What is the amount of consolidated net income for the year 2019?

Reference no: EM132380202

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What is the amount of consolidated net income for the year

Reference no: EM132380202

Reference no: EM132380202

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