1. Hamza Inc. acquired all of the outstanding common stock of Ali Corp. on January 1, 2016, for $372,000. Equipment with a ten-year life was undervalued on Ali's financial records by $46,000. Hamza also owned an unrecorded customer list with an assessed fair value of $67,000 and an estimated remaining life of five years.

   Ali Co. earned reported net income of $180,000 in 2016 and $216,000 in 2017. Dividends of $70,000 were paid in each of these two years. Selected account balances as of December 31, 2018, for the two companies follow.

   	Hamza Co	Ali Co
   Revenues	$1,080,000	$840,000
   Expenses	480,000	600,000
   Investment income	Not given	0
   Retained earnings, 1/1/18	840,000	600,000
   Dividends paid	132,000	70,000

   17. If the partial equity method had been applied, what was 2018 consolidated net income?

   		$768,400.
   		$840,000.
   		$240,000.
   		$822,000.
   		$600,000.