REFERENCE: Ref.03_04 Jans Inc.acquired All of the Outstanding Common Stock of Tysk

Multiple Choice

REFERENCE: Ref.03_04
Jans Inc.acquired all of the outstanding common stock of Tysk Corp.on January 1,2009,for $372,000.Equipment with a ten-year life was undervalued on Tysk's financial records by $46,000.Tysk also owned an unrecorded customer list with an assessed fair value of $67,000 and an estimated remaining life of five years.
Tysk earned reported net income of $180,000 in 2009 and $216,000 in 2010.Dividends of $70,000 were paid in each of these two years.Selected account balances as of December 31,20011,for the two companies follow.

-If the partial equity method has been applied,what was 2011 consolidated net income?

A) $840,000.
B) $768,400.
C) $822,000.
D) $240,000.
E) $600,000.