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Please use the following information for Questions 4 - 5. On January 1, 2021, Wallace, Inc. acquired 80% of the outstanding voting common stock of
Please use the following information for Questions 4 - 5. On January 1, 2021, Wallace, Inc. acquired 80% of the outstanding voting common stock of Brenna Corp. for $444,000. There is no active market for Brennan's stock. Of this payment, $48,000 was allocated to equipment (with a five-year life) that had been undervalued on Brennan's books by $60,000. Any remaining excess was attributable to goodwill which has not been impaired. As of December 31, 2021, before preparing the consolidated worksheet, the financial statements appeared as follows: Wallace, Inc. Brennan Corp. Revenues $540,000 $310.000 Cost of goods sold (252,000) (124.000) Operating expenses (36,000) (15,500) Net income 252.000 170,500 420.000 210,000 170,500 252,000 Retained earnings, 1/1/21 Net income (above) Dividends paid Retained earnings, 12/31/21 0 0 672.000 380,500 294,000 126,000 210,000 154,000 Cash and receivables Inventory Investment in Brennan Company Equipment (net) 444.000 0 616,000 420,000 Total assets 1,564.000 700,000 Liabilities 588,000 304.000 196,000 123,500 380,500 672.000 Common stock Retained earnings (above) Total liabilities and stockholders equity 1.564,000 700,000 During 2021. Wallace bought inventory for $150.000 and sold it to Brennan for $187.500. 60% of these goods were still in the company's possession on December 31, 2021. Question 4 3 pts What is the total of consolidated revenues? $662.500 O $788.000 O $700.000 O $850.000 O $1.037,500 Question 5 3 pts What is the consolidated total of non-controlling interest appearing in the balance sheet? $142.700 $122.900 O $120.500 O $147.500 O $145.100
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