REFERENCE: Ref.03_13 Fesler Inc.acquired All of the Outstanding Common Stock of Pickett

question 41

Essay

REFERENCE: Ref.03_13
Fesler Inc.acquired all of the outstanding common stock of Pickett Company on January 1,2009.Annual amortization of $22,000 resulted from this transaction.On the date of the takeover,Fesler reported retained earnings of $520,000 while Pickett reported a $240,000 balance.Fesler reported net income of $100,000 in 2009 and $68,000 in 20010,and paid dividends of $25,000 in dividends each year.Pickett reported net income of $24,000 in 2009 and $36,000 in 2010,and paid dividends of $10,000 in dividends each year.
Assume that Fesler's reported net income includes Equity in Subsidiary Income.
-If the parent's net income reflected use of the equity method,what were the consolidated retained earnings on December 31,2010?

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Definitions:

Block Means

Average values of data grouped together in blocks, often used in experimental design to account for variation.

Randomized Block Design

A statistical experimental design technique that involves grouping similar experimental units into blocks before randomly assigning treatments to the units within each block.

Treatments

Interventions or conditions that researchers apply to experimental units or subjects to measure their effect.

Levels

In the context of experimental design, refers to the different values that an experimental factor can take.