Jaynes Inc

question 8

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.
What was consolidated net income for the year ended December 31, 2013?

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Definitions:

Sodium Ions

Positively charged particles of sodium, which play crucial roles in the body such as maintaining fluid balance, transmitting nerve impulses, and muscle contraction.

Substance P

A neuropeptide involved in the transmission of pain and other sensory information to the central nervous system.

Pheromones

Chemical substances produced and released into the environment by an animal, affecting the behavior or physiology of others of the same species.

Cytokines

Signaling proteins secreted by cells, playing a critical role in immune system responses and inflammation.