Flores Inc. acquired all of the outstanding common stock of Wilde Company on January 1, 2020....

 

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Flores Inc. acquired all of the outstanding common stock of Wilde Company on January 1, 2020. Annual amortization of $32,000 resulted from this transaction. On the date of the acquisition, Flores reported retained earnings of $630,000 while Wilde reported a $290,000 balance for retained earnings. Flores reported net income of $120,000 in 2020 and $75,000 in 2021, and paid dividends of $30,000 in dividends each year. Wilde reported net income of $19,000 in 2020 and $32,000 in 2021, and paid dividends of $8,000 in dividends each year. If the parent's net income reflected use of the partial equity method, what were the consolidated retained earnings on December 31, 2021? Flores Inc. acquired all of the outstanding common stock of Wilde Company on January 1, 2020. Annual amortization of $32,000 resulted from this transaction. On the date of the acquisition, Flores reported retained earnings of $630,000 while Wilde reported a $290,000 balance for retained earnings. Flores reported net income of $120,000 in 2020 and $75,000 in 2021, and paid dividends of $30,000 in dividends each year. Wilde reported net income of $19,000 in 2020 and $32,000 in 2021, and paid dividends of $8,000 in dividends each year. If the parent's net income reflected use of the partial equity method, what were the consolidated retained earnings on December 31, 2021?

Answer rating: 100% (QA)

Retained earning of Flores on Jan12020 Add Net Income of 2020 Less D... View the full answer