On January 1, 2016, Pride Corporation purchased 90 percent of the outstanding voting shares of Star, Inc. for $465,000 cash. The acquisition-date fair value of the noncontrolling interest was $51,700. At January 1, 2016, Star’s net assets had a total carrying amount of $361,900. Equipment (eight-year remaining life) was undervalued on Star’s financial records by $55,200. Any remaining excess fair value over book value was attributed to a customer list developed by Star (four-year remaining life), but not recorded on its books. Star recorded net income of $48,300 in 2016 and $55,200 in 2017. Each year since the acquisition, Star has declared a $13,800 dividend. At January 1, 2018, Pride’s retained earnings show a $172,500 balance.

Selected account balances for the two companies from their separate operations were as follows: Pride Star 2018 Revenues $ 343,700 $ 196,700 2018 Expenses 241,600 134,600

What is consolidated net income for 2018?

Multiple Choice





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