$1.$ Determine consolidated totals for each of these account balances: Sales Allison Corporation acquired $90$ percent of Bretton on January $1,2022.$ Of Bretton's total

acquisition$-$date fair value, $$64,200$ was allocated to undervalued equipment $($with a $10-$year

remaining life$)$ and $$85,600$ was attributed to franchises $($to be written off over a $20-$year period$).$

Since the takeover, Bretton has transferred inventory to its parent as follows:

On January $1,2023,$ Allison sold Bretton a building for $$64,000$ that had originally cost $$89,600$ but

had only a $$38,400$ book value at the date of transfer. The building is estimated to have a five$-$year

remaining life $($straight$-$line depreciation is used with no salvage value$).$

Selected figures from the December $31,2024,$ trial balance of these two companies are as follows:

Cost of Goods Sold

Operating Expenses

Investment Income

Inventory

Equipment $($net$)$

Buildings $($net$)$

Intra$-$entity gross profit $-$ Inventory $1/1/24$

Gross Profit

Gross Profit Rate

Remaining Inventory

Intra$-$Entity Gross Profit

Intra$-$Entity Gross Profit $-$ Inventory $12/31/24$

Gross Profit

Gross Profit Rate

Remaining Inventory

Intra$-$Entity Gross Profit

$2.$ Impact of Intra$-$Entity Building Transfer:

$12/31/23$Transfer price figures

Transfer price

Gain on transfer

Depreciation expense

Accumulated depreciation

$12/31/24$Transfer price figures

Depreciation expense

Accumulated depreciation

$12/31/23$Historical cost figures

Historical cost

Depreciation expense

Accumulated depreciation

$12/31/24$Historical cost figures

Depreciation expense

Accumulated depreciation