CHAPTER 4 HOMEWORK Shved Help Save 5 The following are several account balances taken from the records of Karson and Reilly as of December 31, 2021. A few asset accounts have been omitted here. All revenues, expenses, and dividend declarations occurred evenly throughout the year Annual tests have indicated no goodwill impairment. 5 points 02:50 Sales Cost of goods sold Operating expenses Investment income Retained earnings, 1/1 Dividends declared Trademarks Royalty agreements Licensing agreements Liabilities Connon stock $10 par value) Additional pald-in capital Karson Reilly $ 900,000) $1500,000) 400,000 280,00 200,000 120,000 not given e (1,400,000) (700.000 Be, 20.000 620,00 200.000 720,000 300,000 400.000 400.ee 15.00.600) 209, eee) (400,000) 100,000) 500,00 (600,000 on July 1, 2021. Karson acquired 80 percent of Relay for $1.330,000 cash consideration. In addition, Karson agreed to pay additional cash to the former owners of Reilly if certain performance measures are achieved after three years, Karson assessed a $30,000 fair value for the contingent performance obligation as of the acquisition date and as of December 31, 2021 On July 1, 2021. Reilly's assets and liabilities had book values equal to their fair value except for some trademarks (with five-year remaining lives) that were undervalued by $150,000. Karson estimated Reilly's total fair value at $1,700,000 on July 1, 2021 For the following items, what balances would be reported on Karson's December 31, 2021. consolidated financial statements? Amount Sales Cost of goods sold Operating expenses Consolidated net income Net income attributable to non convirting interest Retained earings, 1/1 Trademarks