EDLISTISCUSC Intercompany inventory transactions and Acquisition Accounting Premium Assume that a parent company acquired 80% of the outstanding voting common stock of a subsidiary on January 1, 2018. On the acquisition date, the identifiable net assets of the subsidiary had fair values that approximated their recorded book values except for a patent, which had a fair value of $200,000 and no recorded book value. On the date of acquisition, the patent had five years of remaining useful le and the parent company amortizes its intangible assets using straight line amortization. During the year ended December 31, 2019, the subsidiary recorded sales to the parent in the amount of $240.000. On these sales, the subsidiary recorded pre-consolidation gross profits equal to 25%. Approximately 30% of this merchandise remains in the parent's inventory at December 31, 2019. The following summarized pre-consolidation financial statements are for the parent and the subsidiary for the year ended December 31, 2019 Investor investee 500.000 500.000 200.000 200.000 100.000 $1.809,600 5320,000 Retained earnings statement $1,488 000 100.000 1,809,600 320,000 (128.0001 180,000) S2160,000 320.000 Dividends declared Balance sheet 51 600 000 200,000 COD 000000 51000 5800.000 55200000 320000 Nendaris 2169.000 You testochoduty 510064.600 20000 000 Based on this information, determine the balance for Consolidated Expenses 200 000 $3,680,000 32.738000 53.490.000 EDLISTISCUSC Intercompany inventory transactions and Acquisition Accounting Premium Assume that a parent company acquired 80% of the outstanding voting common stock of a subsidiary on January 1, 2018. On the acquisition date, the identifiable net assets of the subsidiary had fair values that approximated their recorded book values except for a patent, which had a fair value of $200,000 and no recorded book value. On the date of acquisition, the patent had five years of remaining useful le and the parent company amortizes its intangible assets using straight line amortization. During the year ended December 31, 2019, the subsidiary recorded sales to the parent in the amount of $240.000. On these sales, the subsidiary recorded pre-consolidation gross profits equal to 25%. Approximately 30% of this merchandise remains in the parent's inventory at December 31, 2019. The following summarized pre-consolidation financial statements are for the parent and the subsidiary for the year ended December 31, 2019 Investor investee 500.000 500.000 200.000 200.000 100.000 $1.809,600 5320,000 Retained earnings statement $1,488 000 100.000 1,809,600 320,000 (128.0001 180,000) S2160,000 320.000 Dividends declared Balance sheet 51 600 000 200,000 COD 000000 51000 5800.000 55200000 320000 Nendaris 2169.000 You testochoduty 510064.600 20000 000 Based on this information, determine the balance for Consolidated Expenses 200 000 $3,680,000 32.738000 53.490.000
