Accounting

Ol. On January 1, 2019, Finead Incorporated paid $299,895 for an 80% interest in Shalle Company, At that time, Shallo's total book value was $289,687. Patents were undervalued in the amount of $9,982. Patents had a 5 year remaining useful life, and any remaining excess value was alinbuted to goodwill. The income statements for the year ended December 31, 2019 of Finnead and Stulle are summarized below Pinread Stulle Silos $500,000 $300.000 Income from Stulle 178.400 Cout of sales (100,q00) (100,000) Deprecation (70,000) (30,000) Other Expensea (130,000) Net Income $578.400 $100.000