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Point Company acquired 80 percent of the stock of Slash Corp. on January 1, 2019. The stockholder's equity section of Slash's balance sheet at that
Point Company acquired 80 percent of the stock of Slash Corp. on January 1, 2019.
The stockholder's equity section of Slash's balance sheet at that date is as follows:
Stockholder’s Equity Section
Slash
Slash
Common Stock 600,000 $200,000
Additional Paid in Capital 1,000,000 400,000
Retained Earnings 800,000 600,000
Accumulated Other comprehensive Income 100,000 50,000
Total Stockholders’ Equity $2,500,000 $1,250,000
Point financed the acquisition by using $1,000,000 cash and giving a note payable for $125,000. Book value approximated fair value for all of Slash's assets and liabilities except for:
· Buildings which had a fair value of $50,000 more than its book value and a remaining useful life of 10 years.
· Land which had a fair value of $40,000 more than its book value.
· Merchandise Inventory which had a fair value of 20,000 more than its book value, and was sold during 2019.
· Internally created patent with a fair value of 30,000 and a useful life of 5 years.
· Any remaining differential was related to goodwill. Goodwill is deemed to be impaired and worth only $12,000.
· Slash has accounts payable to Point in the amount of $25,000.
During 2019, Point & Slash had the followings:
Point
Slash
Point financed the acquisition by using $1,000,000 cash and giving a note payable for $125,000. Book value approximated fair value for all of Slash's assets and liabilities except for:
· Buildings which had a fair value of $50,000 more than its book value and a remaining useful life of 10 years.
· Land which had a fair value of $40,000 more than its book value.
· Merchandise Inventory which had a fair value of 20,000 more than its book value, and was sold during 2019.
· Internally created patent with a fair value of 30,000 and a useful life of 5 years.
· Any remaining differential was related to goodwill. Goodwill is deemed to be impaired and worth only $12,000.
· Slash has accounts payable to Point in the amount of $25,000.
During 2019, Point & Slash had the followings:
Point
Slash
1. Declared cash dividends $120,000 $ 60,000
2. Earned net income 200,000 100,000
3. Earned other comprehensive income from available-for-sale securities 40,000 20,000
What is the amount of the Consolidated Comprehensive Income?
What is the amount of the Consolidated Comprehensive Income?
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