Parker, Inc., acquires 70 percent of Sawyer Company for $420,000. The remaining 30 percent of Sawyers outstanding shares continue to trade at a collective value of $174,000. On the acquisition date, Sawyer has the following accounts:

	Book Value				Fair Value
Current assets	$	210,000			$	210,000
Land		170,000				180,000
Buildings		300,000				330,000
Liabilities		(280,000	)			(280,000	)

The buildings have a 10-year remaining life. In addition, Sawyer holds a patent worth $140,000 that has a five-year remaining life but is not recorded on its financial records. At the end of the year, the two companies report the following balances:

	Parker			Sawyer
Revenues	$	(900,000	)	$	(600,000	)
Expenses		600,000			400,000

1. Assume that the acquisition took place on January 1. What figures would appear in a consolidated income statement for this year?

2. Assume that the acquisition took place on April 1. Sawyers revenues and expenses occurred uniformly throughout the year. What amounts would appear in a consolidated income statement for this year?

a. January 1 b. April 1 Combined revenues Combined expenses Consolidated net income Net income attributable to noncontrolling interest Net income attributable to Parker, Inc