Angela Corporation (a private company) acquired all of the outstanding voting stock of Eddy Tech, Incorporated, on January 1, 2024, in exchange for $9,330,000 in cash. At the acquisition date, Eddy Techs stockholders equity was $7,930,000 including retained earnings of $3,220,000.

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

Consideration transferred		$ 9,330,000
Eddys stockholders equity		7,930,000
Excess fair over book value		$ 1,400,000
to patented technology (5-year remaining life)	$ 150,000
to trade names (indefinite remaining life)	517,500
to equipment (8-year remaining life)	78,000	745,500
Goodwill		$ 654,500

At the end of 2024, Angela and Eddy Tech reported the following amounts from their individually maintained account balances, before consideration of their parentsubsidiary relationship. Parentheses indicate a credit balance.

Accounts	Angela	Eddy Tech
Sales	$ (8,070,000)	$ (2,550,000)
Cost of goods sold	4,062,000	1,375,000
Depreciation expense	572,000	59,200
Amortization expense	279,000	30,000
Other operating expenses	77,000	55,500
Net income	$ (3,080,000)	$ (1,030,300)

Required:

Prepare a 2024 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.

Angela Corporation and Subsidiary
Consolidated Income Statement
For the year ended December 31, 2024
Sales		$10,620,000
Cost of goods sold		$5,437,000
Gross profit		$5,183,000
Depreciation expense
Amortization Expense
Other operating expenses	132,500	132,500
Consolidated net income