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Timothy Company acquired all of Jackeline Company's outstanding stock on January 1, 2021, for $280, 200 in cash. Jackeline had a book value of only
Timothy Company acquired all of Jackeline Company's outstanding stock on January 1, 2021, for $280, 200 in cash. Jackeline had a book value of only $199,400 on that date. However, equipment (having an eight-year remaining life) was undervalued by $56,000 on Jackeline's financial records. A building with a 20-year remaining life was overvalued by $15.900. In accounting for this investment, Timothy used the equity method. During 2021, Jackeline reported net income of $42,000 and declared and paid dividends of $20,000. Selected accounts taken from the financial records of these two companies as of December 31, 2021, follow: Timothy Jackeline Revenues---Operating $442,000 $167,000 Expenses 234,000 125,000 Equity in Jackeline ? Earnings Equipment (net) 398,000 57,000 Buildings (net) 286,000 70,000 Common Stock 290,000 57,600 Retained earnings, 586,000 163,800 12/31/21 Determine the following account balances as of December 31, 2021: (Do not add dollar sign; do not add comma to your amount; round the answer to the whole number) 1. Consolidated Net Income 2. Consolidated Equipment (net) 3. Consolidated Buildings (net) 4. Consolidated Goodwill (net) 5. Consolidated Retained Earnings, 12/31/21
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