REFERENCE: Ref.03_01 On January 1,2009,Cale Corp.paid $1,020,000 to Acquire Kaltop Co.Kaltop Maintained

question 119

Multiple Choice

REFERENCE: Ref.03_01
On January 1,2009,Cale Corp.paid $1,020,000 to acquire Kaltop Co.Kaltop maintained separate incorporation.Cale used the equity method to account for the investment.The following information is available for Kaltop's assets,liabilities,and stockholders' equity accounts:
SHAPE \* MERGEFORMAT
Kaltop earned net income for 2009 of $126,000 and paid dividends of $48,000 during the year.
-If Cale Corp.had net income of $444,000,exclusive of the investment,what is the amount of consolidated net income?

• A)$568,400.
• B)$570,000.
• C)$571,000.
• D)$566,400.
• E)$444,000.

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