On January 1, 2017, Cale Corp. paid $1,020,000 to acquire Kaltop Co. Kaltop maintained separate incorporation. Cale used the equity method to account for the investment. The following information is available for Kaltop's assets, liabilities, and stockholders' equity accounts on January 1, 2017: BookValuesFairValuesCurrent assets$120,000 $120,000 Land 72,000 192,000 Building (twenty year life) 240,000 268,000 Equipment (ten year life) 540,000 516,000 Current liabilities 24,000 24,000 Long-term liabilities 120,000 210,000 Common stock 228,000 Additional paid-in capital 384,000 Retained earnings 216,000 ??Kaltop earned net income for 2017 of $126,000 and paid dividends of $48,000 during the year. ?If Cale Corp. had net income of
$444,000 in 2017, exclusive of the investment, what is the amount of consolidated net income?
A. $444,000.
B. $571,000.
C. $570,000.
D. $569,000.
E. $566,400.
Answer: B
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In a linear programming formulation, a statement such as "maximize contribution" becomes a(n):
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