Jaynes Inc. acquired all of Aaron Co.'s common stock on January 1, 2017, by issuing 11,000 shares of $1 par value common stock. Jaynes' shares had a $17 per share fair value. On that date, Aaron reported a net book value of $120,000. However, its equipment (with a five-year remaining life) was undervalued by $6,000 in the company's accounting records. Any excess of consideration transferred over fair value of assets and liabilities acquired is assigned to an unrecorded patent to be amortized over ten years.The following figures came from the individual accounting records of these two companies as of December 31, 2017: Jaynes Inc. Aaron Co.Revenues$720,000  $276,000 Expenses 528,000   144,000 Investment incomeNot given   - Dividends paid 100,000   60,000 ??The

following figures came from the individual accounting records of these two companies as of December 31, 2018:? Jaynes Inc. Aaron Co.Revenues$840,000  $336,000 Expenses 552,000   180,000 Investment incomeNot given   - Dividends paid 110,000   50,000 Equipment 600,000   360,000 Retained earnings, 12/31/18 balance 960,000   216,000 ?What was consolidated net income for the year ended December 31, 2018?

What will be an ideal response?



   
Net income of Jaynes Inc. ($840,000 - $552,000)$288,000     
Net income of Aaron Co. ($336,000 - $180,000)$156,000     
Amortization expense (from schedule below) (7,300)    
Consolidated net income - 2018$436,700     
Excess of fair value assigned to specific accounts based on fair value       
Equipment 6,000 5 years$1,200 
Patent$61,000 10 years 6,100 
Total    $7,300 


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