Angela Corporation (a private company) acquired all of the outstanding voting stock of Eddy Tech, Inc., on January 1, 2021, in exchange for $9,580,000 in cash. At the acquisition date, Eddy Techs stockholders equity was $7,230,000 including retained earnings of $3,305,000.

At the acquisition date, Angela prepared the following fair value allocation schedule for its newly acquired subsidiary:

Consideration transferred				$	9,580,000
Eddys stockholders equity					7,230,000
Excess fair over book value				$	2,350,000
to patented technology (5-year remaining life)	$	153,000
to trade names (indefinite remaining life)		508,500
to equipment (8-year remaining life)		82,000			743,500
Goodwill				$	1,606,500

At the end of 2021, Angela and Eddy Tech report the following amounts from their individually maintained account balances, before consideration of their parentsubsidiary relationship. Parentheses indicate a credit balance.

	Angela				Eddy Tech
Sales	$	(8,482,500	)		$	(2,580,000	)
Cost of goods sold		4,268,250				1,390,000
Depreciation expense		508,000				60,800
Amortization expense		321,000				14,600
Other operating expenses		94,400				64,800
Net income	$	(3,290,850	)		$	(1,049,800	)

Required:

Prepare a 2021 consolidated income statement for Angela and its subsidiary Eddy Tech. Assume that Angela, as a private company, elects to amortize goodwill over a 10-year period.

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Item 4

Angela Corporation (a private company) acquired all of the outstanding voting stock of Eddy Tech, Inc., on January 1, 2021, in exchange for $9,580,000 in cash. At the acquisition date, Eddy Techs stockholders equity was $7,230,000 including retained earnings of $3,305,000.

At the acquisition date, Angela prepared the following fair value allocation schedule for its newly acquired subsidiary:

Consideration transferred				$	9,580,000
Eddys stockholders equity					7,230,000
Excess fair over book value				$	2,350,000
to patented technology (5-year remaining life)	$	153,000
to trade names (indefinite remaining life)		508,500
to equipment (8-year remaining life)		82,000			743,500
Goodwill				$	1,606,500

At the end of 2021, Angela and Eddy Tech report the following amounts from their individually maintained account balances, before consideration of their parentsubsidiary relationship. Parentheses indicate a credit balance.

	Angela				Eddy Tech
Sales	$	(8,482,500	)		$	(2,580,000	)
Cost of goods sold		4,268,250				1,390,000
Depreciation expense		508,000				60,800
Amortization expense		321,000				14,600
Other operating expenses		94,400				64,800
Net income	$	(3,290,850	)		$	(1,049,800	)

Required:

Prepare a 2021 consolidated income statement for Angela and its subsidiary Eddy Tech. Assume that Angela, as a private company, elects to amortize goodwill over a 10-year period.