On December 31, 2020, Petra Company invests $35,000 in Valery, a variable interest entity. In contractual agreements completed on that date, Petra established itself as the primary beneficiary of Valery. Previously, Petra had no equity interest in Valery. Immediately after Petras investment, Valery presents the following balance sheet:

Cash	$	35,000	Long-term debt	$	105,000
Marketing software		155,000	Noncontrolling interest		105,000
Computer equipment		55,000	Petra equity interest		35,000
Total assets	$	245,000	Total liabilities and equity	$	245,000

Each of the amounts represents an assessed fair value at December 31, 2020, except for the marketing software.

The December 31 business fair value of Valery is assessed at $140,000.

1. If the carrying amount of the marketing software was undervalued by $40,000, what amounts for Valery would appear in Petras December 31, 2020, consolidated financial statements?

2. If the carrying amount of the marketing software was overvalued by $40,000, what amounts for Valery would appear in Petras December 31, 2020, consolidated financial statements

Required A

If the carrying amount of the marketing software was undervalued by $40,000, what amounts for Valery would appear in Petras December 31, 2020, consolidated financial statements? (Input all amounts as positive values.)

Account	Amount

Required B

f the carrying amount of the marketing software was overvalued by $40,000, what amounts for Valery would appear in Petras December 31, 2020, consolidated financial statements? (Input all amounts as positive values.)

Account

Amount

On December 31, 2020. Petra Company invests $35.000 in Valery, a variable interest entity. In contractual agreements completed on that date, Petra established itself as the primary beneficiary of Valery Previously, Petra had no equity interest in Valery. Immediately after Petra's investment. Valery presents the following balance sheet Cash Marketing software Computer equipment Total assets 35,000 155, de S5, eee $ 245, eee Long-term debt Noncontrolling interest Petra equity interest Total liabilities and equity $ 105,000 185,000 35,eee $ 245, see Each of the amounts represents an assessed fair value at December 31, 2020, except for the marketing software The December 31 business fair value of Valery is assessed at $140,000 a. If the carrying amount of the marketing software was undervalued by $40,000, what amounts for Valery would appear in Petra's December 31, 2020. consolidated financial statements? b. If the carrying amount of the marketing software was overvalued by $40,000, what amounts for Valery would appear in Petra's December 31, 2020, consolidated financial statements? Complete this question by entering your answers in the tabs below. Required A Required B If the carrying amount of the marketing software was overvalued by $40,000, what amounts for Valery would appear in Petra's December 31, 2020, consolidated financial statements? (Input all amounts as positive values.) Amount Account Cash Computer equipment Goodwill Prex 1 of 5 !! Next > On December 31, 2020, Petra Company invests $35,000 in Valery, a variable interest entity. In contractual agreements completed on that date, Petra established itself as the primary beneficiary of Valery Previously, Petra had no equity interest in Valery Immediately after Petra's investment. Valery presents the following balance sheet Cash Marketing software Computer equipment Total assets $ 35,000 155, eee 55,000 $ 245,000 Long-term debt Noncontrolling interest Petra equity interest Total liabilities and equity $ 105, eee 1es.ee 35,000 $ 245,00 Each of the amounts represents an assessed fair value at December 31, 2020, except for the marketing software, The December 31 business fair value of Valery is assessed at $140,000 a. If the carrying amount of the marketing software was undervalued by $40,000, what amounts for Valery would appear in Petra's December 31, 2020, consolidated financial statements? b. If the carrying amount of the marketing software was overvalued by $40.000. what amounts for Valery would appear in Petra's December 31, 2020, consolidated financial statements? Complete this question by entering your answers in the tabs below. Required A Required B If the carrying amount of the marketing software was undervalued by $40,000, what amounts for Valery would appear in Petra's December 31, 2020, consolidated financial statements? (Input all amounts as positive values.) Account Amount Cash Computer equipment Gain on bargain purchase