Good Corporation acquired 80 percent of the outstanding stock of Morning, Inc., on January 1, 2008, for $1,400,000 in cash, debt, and stock. One of Morning€™s buildings, with a 10-year remaining life, was undervalued on the company€™s accounting records by $80,000. Also, Morning€™s newly developed unpatented technology, with an estimated 10-year life, was assessed to have a fair value of $550,000.
During subsequent years, Morning reports the following:

The following trial balances are for these two companies as of December 31, 2011. Morning owes Good $100,000 as of this date.

Using the purchase method, prepare consolidated balances for this business combination for2011.

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2008 2009 2010 2011 Net Income $180,000 200,000 300,000 400,000 Dividends Paid $100,000 100,000 100,000 120,000 Good Morning Debits $ 300,000 200,000 400,000 500,000 Casha Receivables Inventory Investment in Morning . Land Buildings (net) Operating expenses. .. Dividends paid 700,000 400,000 1,400,000 700,000 300,000 400,000 380,000 600,000 700,000 100,000 120,000 Total debits $4.580,000 2,620,000 Credits Liabilities Common stock Additional paid-in capital Retained earnings, 1/1/11 Revenues Dividend income S 200,000 620,000 460,000 40,000 1,000,000 500,000 1,000,000 600,000 1,800,000 1 884,000 96,000 Total credits $4 580,000 $2,620,000