Thomas Inc. had the following stockholders’ equity accounts as of January 1, 2013:
Prefered stock– $90 par non voting nonparticipating;
9% cumulative dividned $2,700,000
Common Stock — $25 Par $5,600,000
Retained Earnings $14,000,000
Kuried Co. acquired all of the voting common stock of Thomas on January 1, 2013, for $20,656,000. The preferred stock remained in the hands of outside parties and had a fair value of $3,060,000. A database valued at $656,000 was recognized and amortized over five years.During 2013, Thomas reported earning $630,000 in net income and paid $504,000 in total cash dividends. Kuried used the equity method to account for this investment.
Prepare all consolidation entries for 2013.