Angela Corporation (a private company) acquired all of the outstanding voting stock of Eddy Tech, Inc., on January 1, 2024, in exchange for $9,000,000 in cash. At the acquisition date, Eddy Tech’s stockholders’ equity was $7,200,000 including retained earnings of $3,000,000. 

At the acquisition date, Angela prepared the following fair value allocation schedule for its newly acquired subsidiary:

At the end of 2024, Angela and Eddy Tech report the following amounts from their individually maintained account balances, before consideration of their parent–subsidiary relationship. Parentheses indicate a credit balance.

Required

Prepare a 2024 consolidated income statement for Angela and its subsidiary Eddy Tech. Assume that Angela, as a private company, elects to amortize goodwill over a 10-year period.

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Consideration transferred.. Eddy's stockholder's equity Excess fair over book value to patented technology (5-year remaining life). to trade names (indefinite remaining life)... to equipment (8-year remaining life).. Goodwill..... $150,000 500,000 50,000 $9,000,000 7,200,000 $1,800,000 700,000 $1,100,000