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

question 69

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 partial equity method,what were the consolidated retained earnings on December 31,2010?

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Definitions:

Binge-Eating Disorder

A disorder marked by frequent binges but not extreme compensatory behaviors.

Compensatory Behavior

Actions taken to offset or make up for a perceived flaw or mistake.

Acute Stress Disorder

A mental health condition characterized by the development of severe anxiety, dissociation, and other symptoms that occur within one month after exposure to a traumatic event.

Bulimia Nervosa

An eating disorder marked by binge eating followed by methods to avoid weight gain, such as vomiting or excessive exercise.