Madre Inc buys 80 percent of the outstanding common stock of Niels Corporation on January 1, 2019, for $802,720 cash. At the acquisition date, Niels' total fair value, including the non controlling interest, was assessed at $1,003,400 although Niels' book value was only $690,000. Also, several individual items on Niels' financial records had fair values that differed from their book values as follows:

	Book Value	Fair Value
Land	$65,000	$290,000
Buildings and Equipment (10 yrs. remaining life)	287,000	263,000
Copyright (20 yrs. remaining life)	122,000	216,000
Notes Payable (due in 8 years)	(176,000)	(157,600)

For internal reporting purposes, Madre Inc., employs the equity method to account for this investment. The following account balances are for the year ending December 31, 2019, for both companies.

Prepare consolidated journal entries for next year DECEMBER 31, 2020 (NOT 2019. I have figured that one out already), assuming Niels were to report a net income of 200,000 and paid dividends of 70,000

Please show all calculations on the values of the net income and dividends for the year 2020.

A B o D Madre Revenues Niels -$684,900 432,000 11,600 6,100 9,200 Cost of goods sold Depreciation Expense Amortization Expense Interest Expense Equity in Income of Niels Net Income Retained Earnings 1/1/19 Net Income 0 -$226,000 -$530,000 -226,000 65,000 -$691,000 $764,700 Dividends Declared -$1,394,980 774,000 274,000 0 52,100 -177,120 -472,000 -$1,275,000 -472,000 260,000 -$1,487,000 $856,160 927,840 360,000 909,000 -0- $3,053,000 -$275,000 -541,000 -300,000 -450,000 -1,487,000 -$3,053,000 Retained Earnings 12/31/19 Current Assets Invesment in Niels 0 Land Buildings and Equipment (net) Copyright Total Assets Accounts payable Notes payable Common Stock Additional Paid-In Capital Retained Earnings (above) Total liabilities and equities 65,000 275,400 115,900 $1,221,000 -$ 194,000 -176,000 -100,000 -60,000 -691,000 -$1,221,000