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Angela Corporation (a private company) acquired all of the outstanding voting stock of Eddy Tech, Inc., on January 1, 2021, in exchange for $9,750,000 in
Angela Corporation (a private company) acquired all of the outstanding voting stock of Eddy Tech, Inc., on January 1, 2021, in exchange for $9,750,000 in cash. At the acquisition date, Eddy Tech's stockholders' equity was $7,430,000 including retained earnings of $3,195,000. At the acquisition date, Angela prepared the following fair value allocation schedule for its newly acquired subsidiary: $ 9,750,000 7,430,000 $ 2,320,000 Consideration transferred Eddy's stockholder's equity Excess fair over book value to patented technology (5-year remaining life) to trade names (indefinite remaining life) to equipment (8-year remaining life) Goodwill $ 157,500 500,000 74,000 731,500 $ 1,588,500 At the end of 2021, 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. Sales Cost of goods sold Depreciation expense Amortization expense Other operating expenses Net income Angela $ (8,250,000) 4,152,000 538,000 313,000 77,600 $ (3,169,400) Eddy Tech $ (2,555, 000) 1,377,500 57,600 29, 200 59,100 $ (1,031,600) 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. 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. Angela Company and Subsidiary Consolidated Income Statement For the year ended December 31, 2021 $ 0 0 S 0
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