25. Allison Corporation acquired 90 percent of Bretton on January 1, 2016. Of Brettons total acquisition-

date fair value, $60,000 was allocated to undervalued equipment (with a 10-year remaining

life) and $80,000 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:

Year Cost Transfer Price Remaining at Year-End

2016 $45,000 $90,000 $30,000 (at transfer price)

2017 48,000 80,000 35,000 (at transfer price)

2018 69,000 92,000 50,000 (at transfer price)

On January 1, 2017, Allison sold Bretton a building for $50,000 that had originally cost $70,000

but had only a $30,000 book value at the date of transfer. The building is estimated to have a fiveyear

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

Selected figures from the December 31, 2018, trial balances of these two companies are as

follows:

Allison Bretton

Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $700,000 $400,000

Cost of goods sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 440,000 220,000

Operating expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 120,000 80,000

Investment income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Not given 0

Inventory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 210,000 90,000

Equipment (net) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 140,000 110,000

Buildings (net) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 350,000 190,000

Determine consolidated totals for each of these account balances.