Fesler Inc

question 55

Essay

Fesler Inc. acquired all of the outstanding common stock of Pickett Company on January 1, 2020. Annual amortization of $22,000 resulted from this transaction. On the date of the acquisition, Fesler reported retained earnings of $520,000 while Pickett reported a $240,000 balance for retained earnings. Fesler reported net income of $100,000 in 2020 and $68,000 in 2021, and paid dividends of $25,000 in dividends each year. Pickett reported net income of $24,000 in 2020 and $36,000 in 2021, and paid dividends of $10,000 in dividends each year.If the parent's net income reflected use of the partial equity method, what were the consolidated retained earnings on December 31, 2021?

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Definitions:

Glucose Consumption

The usage of glucose by the body as a source of energy or for metabolic processes.

Brain Activity

The functioning of the brain as evidenced by electrical, chemical, or metabolic changes, often measured by various neuroimaging techniques.

Brain Stem

The part of the brain that connects the spinal cord with the forebrain and cerebrum, controlling many basic life functions such as breathing, heart rate, and blood pressure.

Sleeping

A natural periodic state of rest for the mind and body, characterized by altered consciousness and reduced interactions with surroundings.