Cashen Co. paid $2,400,000 to acquire all of the common stock of Janex Corp. on January 1, 2009. Janex's reported earnings for 2009 totaled $432,000 and it paid $120,000 in dividends during the year. The amortization of allocations related to the investment was $24,000. Cashen's net income, not including the investment, was $3,180,000 and it paid dividends of $900,000. Since Cashen owns 100% of Janex's stock, Equity in Subsidiary Earnings would be equal to the Janex's retained earnings, i.e. 312,000
1. On the consolidated financial statements, what amount should have been shown for Equity in Subsidiary Earnings?
A. $432,000
B. $-0-
C. $408,000
D. $120,000
E. $312,000
2. On the consolidated financial statements, what amount should have been shown for consolidated dividends?
A. $900,000
B. $1,020,000
C. $876,000
D. $996,000
E. $948,000
3. What is the amount of consolidated net income?
A. $3,180,000
B. $3,612,000
C. $3,300,000
D. $3,588,000
E. $3,420,000