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Scott Co. paid $2,800,000 to acquire all of the common stock of Dawn Corp. on...

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Accounting

Scott Co. paid $2,800,000 to acquire all of the common stock of Dawn Corp. on January 1, 2020. Dawns reported earnings for 2020 totaled $512,000, and it paid $160,000 in dividends during the year. The amortization of allocations related to the investment was $28,000. Scotts net income, not including the investment, was $3,310,000, and it paid dividends of $950,000.

What is the amount of consolidated net income for the year 2020?

Multiple Choice

  • $3,150,000.

  • $3,282,000.

  • $3,310,000.

  • $3,794,000.

  • $3,822,000.

  • If you could please show how you arrived at this answer. Thank you.

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