On January 1, 2014, Paterson Company purchased 60% of the common stock of Smith Company for $540,000. At that time, Smith's stockholders' equity consisted of $70,000 of Common stock, $190,000 of other contributed capital, and $240,000 of Retained earnings. Any difference between implied and book value relates to Smith's land. Paterson uses the cost method to record its investment in Smith. Its fiscal year ends on December 31.

Additional information for both companies for 2020 follows:

PatersonSmith

Commonstock$300,000$70,000

Other contributedcapital520,000190,000

Retained Earnings, 1/1/2020940,000370,000

Net Income for2020262,00089,000

Dividends declared in202040,00021,000

Required:

(a).make all the necessary eliminating entries on a consolidated statements workpaper on 12/31/2020.

(b). Calculate the consolidated net income for 2020.