Chapter 5 Problem 25 Allison Corporation acquired 90 percent of Bretton on January 1, 2016. Of Bretton's 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: Yr Dost Transfer PI'IOI Milling It Year-End 201 6 $45,000 590.000 530.000 (at transfer prlce) 201? 48.000 80.000 35.000 [at transfer price) 201 3 69.000 92.000 50,000 (at transfer prlce) 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 five year remaining life (straight-line depreciation is used with no salvage value). Selected gures from the December 31, 2018, trial balances of these two companies are as follows: .M Sales ................................................ $700,000 $400,000 Cost of goods sold ................................... 440.000 220.000 Operating expenses .................................. 1 20.000 80.000 Investment Income ................................... Not given -0-- Invemory ............................................ 210.000 90.000 Equlprnent {net} ............... . ................... . . . 140.000 1 10,000 Bulldlngs (not; ........................................ 350.000 190.000 Determine consolidated totals for each of these account balances