8. Melrose Corporation acquired 80 percent of the voting common stock of Scott Company on January 1, 2000. The acquisition cost included a $40,000 purchase differential assigned to a patent with an estimated life of 10 years. Scott Company owns 70 percent of the voting common stock of Kelso, Inc., acquired at underlying book value three years ago. Scott also owns 10 percent of Tweed Woolens which, in turn, owns 30 percent of the voting common stock of Peebles Corporation. Separate operating income and dividend data for the five companies for the year ended December 31, 2001, is presented below: Separate Operating Income Dividends Melrose $400,000 $120,000 Scott 300,000 80,000 Kelso 200,000 180,000 Tweed 200,000 80,000 Peebles 100,000 40,000 Required: Compute consolidated net income for 2001. Also show Melrose's share. 8. Melrose Corporation acquired 80 percent of the voting common stock of Scott Company on January 1, 2000. The acquisition cost included a $40,000 purchase differential assigned to a patent with an estimated life of 10 years. Scott Company owns 70 percent of the voting common stock of Kelso, Inc., acquired at underlying book value three years ago. Scott also owns 10 percent of Tweed Woolens which, in turn, owns 30 percent of the voting common stock of Peebles Corporation. Separate operating income and dividend data for the five companies for the year ended December 31, 2001, is presented below: Separate Operating Income Dividends Melrose $400,000 $120,000 Scott 300,000 80,000 Kelso 200,000 180,000 Tweed 200,000 80,000 Peebles 100,000 40,000 Required: Compute consolidated net income for 2001. Also show Melrose's share