At December 31, 2020, The Comparative income statements of Portland Corporation and Sand Corporation shows the following (in thousands):
|
Portland, |
Sand |
|
|
Sales |
$6,400 |
$2,600 |
|
Income from Sand |
768 |
|
|
Total revenue |
7,168 |
2,600 |
|
Less: Cost of goods sold |
3,600 |
800 |
|
Operating expenses |
1,600 |
800 |
Additional information
1. Portland Corporation acquired 80 percent of Sand for $3,200,000 on January 1, 2018, when Sand’s stockholders’ equity at book value was $2,800,000.
2. The excess of the cost of Portland’s investment in Sand over book value acquired was allocated
$120,000 to undervalued inventories that were sold in 2018, $160,000 to undervalued equipment with a four-year remaining useful life, and the remainder to goodwill.
Required:
Prepare a consolidated income statement for Portland Corporation and Subsidiary for the year
ended December 31, 2020.
