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

question 43

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 initial value method,what were the consolidated retained earnings on December 31,2010?

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Definitions:

Diabetes

A group of diseases that affect how the body uses blood glucose, often leading to chronic health issues.

Phenylketonuria

A genetic disorder characterized by the inability of the body to process the amino acid phenylalanine, leading to harmful levels in the blood and brain if untreated.

Mental Retardation

An outdated term now referred to as intellectual disability, characterized by significant limitations in intellectual functioning and adaptive behavior.

Hyperactivity

A condition characterized by excessive movement, impulsivity, and difficulty in maintaining attention, often associated with attention deficit hyperactivity disorder (ADHD).