On January 1, Jarel acquired 80 percent of the outstanding voting stock of Suarez for $260,000 cash consideration. The remaining 20 percent of Suarez had an acquisition-date fair value of $65,000. On January 1, Suarez possessed equipment (five-year remaining life) that was undervalued on its books by $25,000. Suarez also had developed several secret formulas that Jarel assessed at $50,000. These formulas, although not recorded on Suarez's financial records, were estimated to have a 20-year future life. As of December 31, the financial statements appeared as follows: Items Revenues Cost of goods sold Expenses Net income Retained earnings, 1/1 Net income Dividends declared Retained earnings, 12/31 Cash and receivables Inventory Investment in Suarez: Equipment (net) Total assets Liabilities. Common stock Retained earnings, 12/31 Total liabilities and equities Required: Jarel Suarez $ (300,000) $ (200,000) 140,000 20,000 $ (140,000) $ (300,000) (140,000) 0 $ (440,000) $210,000 150,000 260,000 440,000 $ 1,060,000 $ (420,000) (200,000) (440,000) $ (1,060,000) 80,000 10,000 $ (110,000) $ (150,000) (110,000) $ (260,000) $ 90,000 110,000 300,000 $ 500,000 $ (140,000) (100,000) (260,000) $ (500,000) Included in the preceding statements, Jarel sold inventory costing $80,000 to Suarez for $100,000. Of these goods, Suarez still owns 60 percent on December 31. Compute the following amounts for the December 21 consolidated financial statements for Jarel and Suarez. On January 1, Jarel acquired 80 percent of the outstanding voting stock of Suarez for $260,000 cash consideration. The remaining 20 percent of Suarez had an acquisition-date fair value of $65,000. On January 1, Suarez possessed equipment (five-year remaining life) that was undervalued on its books by $25,000. Suarez also had developed several secret formulas that Jarel assessed at $50,000. These formulas, although not recorded on Suarez's financial records, were estimated to have a 20-year future life. As of December 31, the financial statements appeared as follows: Items Revenues Cost of goods sold Expenses Net income Retained earnings, 1/1 Net income Dividends declared Retained earnings, 12/31 Cash and receivables Inventory Investment in Suarez: Equipment (net) Total assets Liabilities. Common stock Retained earnings, 12/31 Total liabilities and equities Required: Jarel Suarez $ (300,000) $ (200,000) 140,000 20,000 $ (140,000) $ (300,000) (140,000) 0 $ (440,000) $210,000 150,000 260,000 440,000 $ 1,060,000 $ (420,000) (200,000) (440,000) $ (1,060,000) 80,000 10,000 $ (110,000) $ (150,000) (110,000) $ (260,000) $ 90,000 110,000 300,000 $ 500,000 $ (140,000) (100,000) (260,000) $ (500,000) Included in the preceding statements, Jarel sold inventory costing $80,000 to Suarez for $100,000. Of these goods, Suarez still owns 60 percent on December 31. Compute the following amounts for the December 21 consolidated financial statements for Jarel and Suarez.