Question
Scott Co. paid $2,800,000 to acquire all of the common stock of Dawn Corp. on January 1, 2020. Dawns reported earnings for 2020 totaled $512,000,
Scott Co. paid $2,800,000 to acquire all of the common stock of Dawn Corp. on January 1, 2020. Dawns reported earnings for 2020 totaled $512,000, and it paid $160,000 in dividends during the year. The amortization of allocations related to the investment was $28,000. Scotts net income, not including the investment, was $3,310,000, and it paid dividends of $950,000.
What is the amount of consolidated net income for the year 2020?
Multiple Choice
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$3,150,000.
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$3,282,000.
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$3,310,000.
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$3,794,000.
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$3,822,000.
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If you could please show how you arrived at this answer. Thank you.
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