Jaynes Inc The Following Figures Came from the Individual Accounting Records of January

question 105

Essay

Jaynes Inc. acquired all of Aaron Co.'s common stock on January 1, 2012, by issuing 11,000 shares of $1 par value common stock. Jaynes' shares had a $17 per share fair value. On that date, Aaron reported a net book value of $120,000. However, its equipment (with a five-year remaining life) was undervalued by $6,000 in the company's accounting records. Any excess of consideration transferred over fair value of assets and liabilities is assigned to an unrecorded patent to be amortized over ten years. The following figures came from the individual accounting records of these two companies as of December 31,2012:
$\begin{array}{lrrr}&\text { Jaynes Inc. }&\text { Aaron Co. } \\\text { Revenues } & {720,000} & \$ 276,000 \\\text { Expenses } & 528,000 & 144,000 \\\text { Investment income } & \text { Not given } & - \\\text { Dividends paid } & 100,000 & 60,000\end{array}$
The following figures came from the individual accounting records of these two companies as of December 31,2013:
$\begin{array}{lcc}&\text { Jaynes Inc. }&\text { Aaron Co. } \\\hline \text { Revenues } & 840,000 & 336,000 \\ \text { Expenses } & 552,000 & 180,000 \\ \text { Investment income } & \text { Not given } & \text { - } \\ \text { Dividends paid } & 110,000 & 50,000 \\ \text { Equipment } & 600,000 & 360,000 \\\text { Retained earnings, } 12 / 31 / 13 \text { balance } & 960,000 & 216,000 \\\end{array}$ What was consolidated net income for the year ended December 31, 2013?

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Definitions:

Praise

The expression of approval or admiration for someone or something, often used as a form of encouragement.

Positive Reinforcement

A process in psychology where a behavior is followed by a reward or positive outcome, encouraging that behavior to be repeated in the future.

Desired Behavior

A specific form of behavior that an individual or organization aims to encourage or achieve, often through incentives or motivational techniques.

Consequence Introduction

The act of presenting outcomes or repercussions as part of decision-making processes, particularly in teaching and behavior management.