Jones Inc Paid 2570000 To Purchase 100 Of The Common Stock Of Atlanta Corp On Ja
Jones, Inc paid $2570000 to purchase 100% of thecommon stock of Atlanta Corp. on January 1, 2012.Atlanta’s reported earnings for 2012 totaled $196000. In addition, Atlanta Corp. paid $100000 in dividends duringthe year.
The amortization related to Jones’ investment in Atlantawas $29000 per year. Jones’ net income, not including theincome from the investment, was $1290000 and it paiddividends of $250000 during the year.
On the consolidated financial statements, what amountshould be shown for “Consolidated Net Income” for 2012?