On January 2, 2013, Slurg Corporation paid $600,000 to acquire 60% interest in Padwaddy Inc. At that time, the book value of Padwaddy's stockholders' equity included $700,000 of common stock and $1,800,000 of retained earnings. All the excess purchase cost over the book value acquired was attributable to a patent with an estimated life of 10 years. Padwaddy paid $6,250 of dividends each quarter for the next two years, and reported net income of $180,000 for 2013 and $220,000 for 2014. Slurg recorded all activities related to their investment using the equity method.   Required: Calculate Slurg's income from Padwaddy for 2013. Calculate Slurg's income from Padwaddy for 2014. Determine the balance of Slurg's Investment in Padwaddy account on December 31, 2014.

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Consolidation

Consolidation in general examination implies an asset oscillating between well-defined methods of trading status. Consolidation is commonly known as market indecisiveness, which completes when the asset's values move forward or backward the trading structure.