Cashen Co. paid $2,400,000 to acquire all of the common stock of Janex Corp. on January 1, 2012. Janex's reported earnings for 2012 totaled $432,000, and it paid $120,000 in dividends during the year. The amortization of allocations related to the investment was $24,000. Cashen's net income, not including the investment, was $3,180,000, and it paid dividends of $900,000. What is the amount of consolidated net income for the year 2012? a. $3,300,000. b. $3,612,000. c. $3,180,000. d. $3,420,000. e. $3,588,000.
Cashen Co. paid $2,400,000 to acquire all of the common stock of Janex Corp. on January 1, 2012. Janex's reported earnings for 2012 totaled $432,000, and it paid $120,000 in dividends during the year. The amortization of allocations related to the investment was $24,000. Cashen's net income, not including the investment, was $3,180,000, and it paid dividends of $900,000. What is the amount of consolidated net income for the year 2012? a. $3,300,000. b. $3,612,000. c. $3,180,000. d. $3,420,000. e. $3,588,000.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Cashen co.paid solve this general accounting question

Transcribed Image Text:Cashen Co. paid $2,400,000 to acquire all of the common stock of
Janex Corp. on January 1, 2012. Janex's reported earnings for 2012
totaled $432,000, and it paid $120,000 in dividends during the year.
The amortization of allocations related to the investment was
$24,000. Cashen's net income, not including the investment, was
$3,180,000, and it paid dividends of $900,000.
What is the amount of consolidated net income for the year 2012?
a. $3,300,000.
b. $3,612,000.
c. $3,180,000.
d. $3,420,000.
e. $3,588,000.
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