Jans Inc. acquired all of the outstanding common stock of Tysk Corp. on January 1, 2011, for $372,000. Equipment with a ten-year life was undervalued on Tysk's financial records by $46,000. Tysk also owned an unrecorded customer list with an assessed fair value of $67,000 and an estimated remaining life of five years.
Tysk earned reported net income of $180,000 in 2011 and $216,000 in 2012. Dividends of $70,000 were paid in each of these two years. Selected account balances as of December 31, 2013, for the two companies follow.
______________________Jans__________________Tysk
Revenues..................$1,080,000..................$840,000
Expenses.....................480,000....................600,000
Investment income.......Not given............................0
Retained earnings, 1/1/13..840,000...................600,000
Dividends paid..............132,000.....................70,000
If the partial equity method had been applied, what was 2013 consolidated net income? Give detailed calculation
A) $840,000.
B) $768,400.
C) $822,000.
D) $240,000.
E) $600,000.