Angela Corporation (a private company) acquired all of the outstanding voting stock of Eddy Tech, Inc. on January 1, 2018, in exchange for $9,820,000 in cash. At the acquisition date, Eddy Tech's stockholders' equity was $7,970,000 including retained earnings of $3,470,000.

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

Consideration transferred$9,820,000Eddy's stockholder's equity7,970,000Excess fair over book value$1,850,000to patented technology (5-year remaining life)$181,500to trade names (indefinite remaining life)522,500to equipment (8-year remaining life)100,000804,000Goodwill$1,046,000

At the end of 2018, Angela and Eddy Tech report the following amounts from their individually maintained account balances, before consideration of their parent-subsidiary relationship. Parentheses indicate a credit balance.

AngelaEddy TechSales$(8,280,000)$(2,770,000)Cost of goods sold4,167,0001,485,000Depreciation expense540,00068,000Amortization expense252,00020,600Other operating expenses76,00053,700Net income$(3,245,000)$(1,142,700)

Required:

Prepare 2018 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.