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please show steps to solve it Requlred Information [The following information applies to the questions displayed below.) On January 1, Jarel acquired 80 percent of
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Requlred Information [The following information applies to the questions displayed below.) 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: Jarel (308, 980) 140,000 20,000 (140,000) 000,900) (149,999) Suarez $(208, 080) 80,000 10,000 $(110,000) $(150,980) (118, 089) $ 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 Cannon stock Retained earnings, 12/31 Total liabilities and equities (448,000) 210,000 158,000 268,880 440. gee $ 1.068,880 $(260,000) $ 90,000 119,900 300,000 $ 500,000 $(140,000) (180,000) (260,980) $(500,000) (288,880) 446,908) 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 What is the total of consolidated expenses? Multiple Choice $39.000 $30.000Step by Step Solution
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