Thomas Inc. had the following stockholders' equity accounts as of January 1, 2021: 
Kuried Co. acquired all of the voting common stock of Thomas on January 1, 2021, for $20,656,000. The preferred stock remained in the hands of outside parties and had a fair value of $3,060,000. A database valued at $656,000 was recognized and amortized over five years. During 2021, Thomas reported earning $630,000 in net income and paid $504,000 in total cash dividends. Kuried used the equity method to account for this investment.Prepare all consolidation entries for 2021.
Definitions:
Interest Rate Risk
The potential for investment losses due to fluctuations in interest rates, which can affect the value of interest-bearing assets like bonds.
Price Appreciation
The increase in the value of an asset or investment over time, not accounting for dividends or interest earned.
Ceteris Paribus
A Latin phrase meaning "all other things being equal," used in economics to isolate the effect of one variable by holding others constant.
Yield
The income return on an investment, such as the interest or dividends received, expressed as a percentage of the investment's cost.
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