ollowing are financial statements for Moore Company and Kirby Company for $2025$:

Moore Kirby

Sales $(800,000)(600,000)$

Cost of Goods Sold $500,000400,000$

Operating and Interest expense

Equity in Kirby's earnings

$100,000$

$?$

$160,000$

Net Income $(40,000)$

Retained earnings $1/1/25(1,025,970)(550,000)$

Net Income $?(40,000)$

Dividend paid $130,0000$

Retained earnings $12/31/25?(590,000)$

Cash and receivables $217,000180,000$

Inventory $224,000160,000$

Investment in Kirby $?0$

Equipment $($net$)600,000420,000$

Buildings $1,000,000650,000$

Accumulated depreciation Buildings $(100,000)(200,000)$

Other Assets $200,000100,000$

Total Assets $?1,310,000$

Liabilities $(1,138,000)(570,000)$

Common Stock $(600,000)(150,000)$

Retained earnings, $12/31/25?(590,000)$

Total Liabilities and Equity $?(1,310,000)$

$$ Moore purchased $90\%$ of Kirby on January $1,2024,$ for $$657,000$ in cash. On that date, the

$10\%$ noncontrolling interest was assessed to have a $$73,000$ fair value. Also, at the acquisition

date, Kirby held equipment $(4-$year remaining life$)$ undervalued on the financial records by

$$20,000$ and interest$-$bearing liabilities $(5-$year remaining life$)$ overvalued by $$40,000.$ The rest

of the excess fair value over book value was assigned to previously unrecognized brand names

and amortized over a $10-$year life.

$$ During $2024$ Kirby earned Net Income of $$80,000$ and paid no dividends.

$$ Each year Kirby sells Moore inventory at a $20\%$ gross profit rate. Intra$-$entity sales were

$$145,000$ in $2024$ and $$160,000$ in $2025.$ On January $1,2025,30\%$ of the $2024$ transfers were

still on hand and, on December $31,2025,40\%$ of the $2025$ transfers remained.

$$ Moore sold Kirby a building on January $2,2024.$ It had cost Moore $$100,000$ but had $$90,000$

in accumulated depreciation at the time of this transfer. The price was $$25,000$ in cash. At that

time the building had a five$-$year remaining life.

$1.$ What is the goodwill at the acquisition date?

$2.$ What is the ECOBV amortization?

$3.$ Determine the unrealized gain on the sale of the building from Moore to Kirby in $2024.$

$4.$ Determine the unrealized profits on the transfer of inventory from Kirby to Moore in

$2024$ and $2025.$

$5.$ Determine the balance of Investment in Kirby at December $2025.$ The parent company

uses the equity method to account for the investment.

$6.$ Determine the balance of Equity in Kirby$$s earnings at December $2025.$ The parent

company uses the equity method to account for the investment.

$7.$ Prepare the consolidation journal entries.

$8.$ Complete the consolidation Worksheet and then answer the following questions:

a$.$ What is the total consolidated revenue?

b$.$ What is the total consolidated cost of goods sold?

c$.$ What is the consolidated total for buildings at December $31?$