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On January 1, 2019, A Corp purchased 100 % of the outstanding common stock of Z Corp for $3,500,000. At that time the book value
On January 1, 2019, A Corp purchased 100 % of the outstanding common stock of Z Corp for $3,500,000. At that time the book value of Z Corp's net assets totaled $2,975,000. All assets and liabilities of Z Corp had book values equal to their fair values except for: 6 years 10 years Book Value Fair Value Remaining Life Furniture 500,000 700,000 4 years Customer Lists 0 300,000 Buildings 1,000,000 800,000 Net income for the individual companies for 2019 was as follows: A Corp- Net Income $ 750,000 z Corp Net Loss 300,000 As a result of Z Corp's loss, A Corp recorded an impairment loss in 2019 equal to 25% of the goodwill recorded at acquisition. Compute A Corp's Consolidated Net Income for 2019: (Show all work)
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