On January 1, 2019, Jannison Inc. acquired 90% of Techron Co. by paying $477,000 cash. There is no active trading market for Techron stock. Techron Co. reported a Common Stock account balance of $140,000 and Retained Earnings of $280,000 at that date. The fair value of Techron Co. was appraised at $530,000. The total annual amortization was $11,000 as a result of this transaction. The subsidiary earned $98,000 in 2019 and $126,000 in 2020 with dividend payments of $42,000 each year. Without regard for this investment, Jannison had income of $308,000 in 2019 and $364,000 in 2020.Prepare a proper presentation of consolidated net income and its allocation for 2019.
What will be an ideal response?
| Jannison's income - 2019 | $ | 308,000 | |
| Techron's income - 2019 | 98,000 | ||
| Amortization expense (given) | (11,000 | ) | |
| Consolidated net income | $ | 395,000 | |
| To noncontrolling interest (10%) ($98,000-11,000) | (8,700 | ) | |
| To controlling interest | $ | 386,300 | |
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