On January 1, 2019, Pride Corporation purchased 90 percent of the outstanding voting shares of Star, Inc., for $477,000 cash. The acquisition-date fair value of the noncontrolling interest was $53,000. At January 1, 2019, Star’s net assets had a total carrying amount of $376,000. Equipment (eight-year remaining life) was undervalued on Star’s financial records by $66,400. Any remaining excess fair value over book value was attributed to a customer list developed by Star (four-year remaining life), but not recorded on its books. Star recorded net income of $58,100 in 2019 and $66,400 in 2020. Each year since the acquisition, Star has declared a $16,600 dividend. At January 1, 2021, Pride’s retained earnings show a $207,500 balance. Selected account balances for the two companies from their separate operations were as follows: Pride Star 2021 Revenues $ 413,400 $ 236,600 2021 Expenses 290,600 161,900 What is consolidated net income for 2021?
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On January 1, 2019, Pride Corporation purchased 90 percent of the outstanding voting shares of Star, Inc., for $477,000 cash. The acquisition-date fair value of the noncontrolling interest was $53,000. At January 1, 2019, Star’s net assets had a total carrying amount of $376,000. Equipment (eight-year remaining life) was undervalued on Star’s financial records by $66,400. Any remaining excess fair value over book value was attributed to a customer list developed by Star (four-year remaining life), but not recorded on its books. Star recorded net income of $58,100 in 2019 and $66,400 in 2020. Each year since the acquisition, Star has declared a $16,600 dividend. At January 1, 2021, Pride’s
Selected account balances for the two companies from their separate operations were as follows:
| Pride | Star | |||||
| 2021 Revenues | $ | 413,400 | $ | 236,600 | ||
| 2021 Expenses | 290,600 | 161,900 | ||||
What is consolidated net income for 2021?
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