Patriots Co. purchases 80 percent of Seahawk Company on January 1, 20X1, when Patriots’ retained earnings balance is $725,000 and Seahawks' is $200,000. During 20X1, Seahawk reports $80,000 of net income and declares $10,000 of dividends. Patriots reports $425,000 of operating income and included its share of equity-method income from its 80 percent interest in Seahawk in its net income; Patriots declares dividends of $80,000.

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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.