6-On January 2, 2018, Moving Motors, Inc. acquired Bourland Enterprises as a wholly-owned subsidiary, paying $1,341,500. The purchase price was $800,000 in excess of the book value of Bourland's net assets. Part of the excess was attributable to a building with a 7-year life undervalued by $350,000. The rest was goodwill. On the acquisition date, Bourland reported retained earnings equal to $385,000. The parent uses the cost method of pre-consolidation Equity investment bookkeeping. The 2020 financial statements for the two companies are presented below. Moving Motors, Inc. Bourland Enterprises Sales revenue $1,875,000 $781,000 Cost of goods sold -658,000 -451,000 Gross profit 1.217.000 330,000 Operating expenses -325,000 - 129.000 Dividend income 23.400 Net Income $915.400 $201.000 Retained Earnings, 1/1/20 $2,316,500 $475,500 Net income 915,400 201,000 Dividends -75,000 -23,400 Retained Earnings, 12/31/20 $3,156,900 $653,100 Cash and receivables $491,240 $540,200 Inventory 785,000 515,200 Equity investment 1,341,500 Property, plant & equipment (Net) 3,852,000 346,500 Total Assets $6,469.740 $1,401,900 Accounts payable $408,000 $157,800 Accrued liabilities 498,340 365,000 Notes payable 478,500 69,500 Common stock 350,000 70,000 Additional paid-in capital 1,578,000 86,500 Retained Earnings, 12/31/20 3,156,900 653,100 Total Liabilities and Equities $6,469,740 $1,401,900 Required: At what amount will the following accounts appear on the consolidated financial statements for 2020? a. Cost of Goods Sold b. Dividend Income c. Operating Expenses d. Cash and Receivables e. Equity Investment f. Property, Plant and Equipment (net of accumulated depreciation) g. Goodwill h. Common Stock i. Retained Earnings e 6-On January 2, 2018, Moving Motors, Inc. acquired Bourland Enterprises as a wholly-owned subsidiary, paying $1,341,500. The purchase price was $800,000 in excess of the book value of Bourland's net assets. Part of the excess was attributable to a building with a 7-year life undervalued by $350,000. The rest was goodwill. On the acquisition date, Bourland reported retained earnings equal to $385,000. The parent uses the cost method of pre-consolidation Equity investment bookkeeping. The 2020 financial statements for the two companies are presented below. Moving Motors, Inc. Bourland Enterprises Sales revenue $1,875,000 $781,000 Cost of goods sold -658,000 -451,000 Gross profit 1.217.000 330,000 Operating expenses -325,000 - 129.000 Dividend income 23.400 Net Income $915.400 $201.000 Retained Earnings, 1/1/20 $2,316,500 $475,500 Net income 915,400 201,000 Dividends -75,000 -23,400 Retained Earnings, 12/31/20 $3,156,900 $653,100 Cash and receivables $491,240 $540,200 Inventory 785,000 515,200 Equity investment 1,341,500 Property, plant & equipment (Net) 3,852,000 346,500 Total Assets $6,469.740 $1,401,900 Accounts payable $408,000 $157,800 Accrued liabilities 498,340 365,000 Notes payable 478,500 69,500 Common stock 350,000 70,000 Additional paid-in capital 1,578,000 86,500 Retained Earnings, 12/31/20 3,156,900 653,100 Total Liabilities and Equities $6,469,740 $1,401,900 Required: At what amount will the following accounts appear on the consolidated financial statements for 2020? a. Cost of Goods Sold b. Dividend Income c. Operating Expenses d. Cash and Receivables e. Equity Investment f. Property, Plant and Equipment (net of accumulated depreciation) g. Goodwill h. Common Stock i. Retained Earnings e
