Angela Corporation (a private company) acquired all of the outstanding voting stock of Eddy Tech, Inc., on January 1, 2021, in exchange for $9,000,000 in cash. At the acquisition date, Eddy Techs stockholders equity was $7,200,000 including retained earnings of $3,000,000.

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

Consideration transferred $9,000,000Eddys stockholders equity 7,200,000Excess fair over book value $1,800,000to patented technology (5-year remaining life)$150,000 to trade names (indefinite remaining life) 500,000 to equipment (8-year remaining life) 50,000 700,000Goodwill $1,100,000

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 TechSales$(7,850,000) $(2,400,000)Cost of goods sold 4,200,000 1,300,000 Depreciation expense 425,000 48,000 Amortization expense 250,000 12,000 Other operating expenses 75,000 53,750 Net income$(2,900,000) $(986,250)

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.

Answer is complete but not entirely correct