Point Company acquired 80 percent of the stock of Slash Corp. on January 1, 2019.

The stockholder's equity section of Slash's balance sheet at that date is as follows:

Stockholder’s Equity Section

Slash    

Common Stock 600,000  $200,000

Additional Paid in Capital 1,000,000   400,000

Retained Earnings 800,000   600,000

Accumulated Other comprehensive Income 100,000 50,000

Total Stockholders’ Equity $2,500,000 $1,250,000

Point financed the acquisition by using $1,000,000 cash and giving a note payable for $125,000. Book value approximated fair value for all of Slash's assets and liabilities except for:
· Buildings which had a fair value of $50,000 more than its book value and a remaining useful life of 10 years.
· Land which had a fair value of $40,000 more than its book value.
· Merchandise Inventory which had a fair value of 20,000 more than its book value, and was sold during 2019.
· Internally created patent with a fair value of 30,000 and a useful life of 5 years.
· Any remaining differential was related to goodwill. Goodwill is deemed to be impaired and worth only $12,000.
· Slash has accounts payable to Point in the amount of $25,000.
During 2019, Point & Slash had the followings:

Point
Slash

1. Declared cash dividends $120,000 $ 60,000

2. Earned net income 200,000 100,000

3. Earned other comprehensive income from available-for-sale securities 40,000 20,000


What is the amount of the Consolidated Comprehensive Income?

Answer rating: 100% (QA)

SLASH CORP Earned net income 100000 Less Amortization of int... View the full answer