On January 1, 2018, Pride, Inc. acquired 80% ofthe outstanding voting common stock of Strong Corp....
On January 1, 2018, Pride, Inc. acquired 80% ofthe outstanding voting common stock of Strong Corp. for $364,000. There is no active market for Stongs stock. Ofthis payment, $28,000 was allocated to equipment (with a five-year life) that had been undervalued on Stones books by $35,000. Any remaining excess was attributable to goodwill, which has not been impaired.
As of December 31, 2018, before preparing the consolidated worksheet, the financial statements appeared as follows:
| Pride Inc | Strong Corp | ||
| Revenues | $ | 420,000 | 280,000 |
| Cost Of Goods Sold | (196,000) | (112,000) | |
| Operating expenses | (28,000) | (14,000) | |
| Net income | $ | 196,000 | 154,000 |
| Retained earnings 1/1/18 | 420,000 | 210,000 | |
| Net income(above) | 196,000 | 154,000 | |
| Dividends paid | 0 | 0 | |
| Retained earnings 12/31/18 | $ | 616,000 | 364,000 |
| Cash and receivables | 294,000 | 126,000 | |
| Inventory | 210,000 | 154,000 | |
| Investment in Strong Corp | 364,000 | 0 | |
| Equipment(net) | 616,000 | 420,000 | |
| Total Assets | $ | 1,484,000 | 700,000 |
| Liabilities | 588,000 | 196,000 | |
| Common stock | 280,000 | 140,000 | |
| Retained earnings 12/31/18 above | 616,000 | 364,000 | |
| Total liabilities and stckholder's equity | $ | 1,484,000 | 700,000 |
During 2018, Pride bought inventory for $112,000 and sold it to Strong for $ 140,000. Only half of the inventory purchase price had been remitted to Pride by Strong at year-end. As of December 31, 2018, 60% of these goods remained in the company's possession.
A)What is the total of consolidated revenues?
B)What is the total of consolidated operating expenses?
C)What is the total of consolidated cost of goods sold?
D)What is the consolidated total of noncontrolling interest appearing in the balance sheet?
E)What is the consolidated total for equipment (net) at December 31, 2018?
F)What is the consolidated total for inventory at December 31, 2018?
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On January 1,
2018, Pride, Inc. acquired 80% ofthe outstanding voting common
stock of Strong Corp....
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