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Assume an investor acquired 100% of the voting common stock of an investee on January X1, 2012 in a transaction that qualifies as a
Assume an investor acquired 100% of the voting common stock of an investee on January X1, 2012 in a transaction that qualifies as a business combination. As a result of the acquisition, the investor recognized no goodwill and no bargain purchase gain in the post- acquisition consolidated financial statements (i.e., all of the resulting Acquisition Accounting Premium relates to identifiable net assets). The investor uses the equity method to account for its pre-consolidation investment in the investee. In addition, there are no intercom-pany transactions between the investor and investee. The following summarized pre-consolidation financial statement information is for the year ending December 31, 2019: Income Statement Revenues Equity Income Expenses Balance Sheet. Equity Investment All other assets Liabilities Common stock and apic Retained earnings Investor $ 2,216,000 132,000 (1,849,000) $ 252,000 4,550,000 2,798,000 789,000 1,031,000 Investee $ 306,000 (153,000) $ 0 316,000 156,000 71,000 130,000 Calculate total Assets in the consolidated income statement for the year ending December 31, 2019.
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