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Posted: March 9th, 2022
Consolidated Income Statement Assignment
Prepare consolidated income statement three years after acquisition Comparative income statements of Pek Corporation and Slo Corporation for the year ended December 31, 2013, are as follows (in thousands) Slo Pek $2,000 $6,400 522 Sales Income from Slo Total revenue Less: Cost of goods sold Operating expenses Total expenses Net income 2,000 800 600 1,400 6,922 3,600 1,600 5,200 $1,722 $ 600 s0 Cs ni teams moin
b ADDITIONAL INFORMATION 1. Slo is a 90 percent-owned subsidiary of Pek, acquired by Pek for $3,240,000 on Slo's stockholders' equity at book value was $2,800,000 2. The excess of the cost of Pek's investment in Slo over book value acquired was allocated $120,000 to undervalued inventories that were sold in 2011, $80,000 to undervalued equipment with a four-year remaining useful life, and the remainder to goodwill. January 1, 2011, when REQUIRED: Prepare a consolidated income statement for Pek Corporation and Subsidiary for the year ended December 31, 2013. Get Accounting homework help today
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