Q.32

32 On January 1 2021. Pride, Inc. acquired 80% of the outstanding voting common stock of Strong Corp for $364,000. There is no active market for Strang's stock. Of this payment. $28,000 was allocated to equipment with a five year fo) that had boon undervalued on Strong's books by $35.000. Any remaining excess was attributable to goodwilt which has not been impaired As of December 31 2021, before preparing the consolidated worksheet, the financial statements appeared as follows 25 om Nevenues Cont of goods sold Operating expenses Net Income Retained earnings, 1/1/21 Net income (above) Dividends paid Retained earnings, 12/31/21 Cash and receivables Inventory Investment in strong corp Equipment (net) Total assets Liabilities Common stock Retained earnings, 12/31/21 (above) Total liabilities and stockholders equity Pride, Inc. $ 420,000 (196,000) (28,000) $ 196,000 $ 420,000 196,000 0 5 616,000 $ 294,000 210,000 364,000 616,000 $1,484.000 $ 588,000 280,000 616,000 $1,484,000 Strong Corp. $ 280,000 (112,000) (14,000) $ 154,000 $ 210,000 154,000 0 $364,000 $ 126,000 154,000 0 420,000 $ 700,000 $ 196,000 140,000 364,000 $ 700,000 During 2021. Pride bought inventory for $112.000 and sold it to Strong for $140,000. Only half of the inventory purchase price had been remitted to Pride by Strong at year-end. As of December 31, 2021, 60% of these goods remained in the company's possession Help Save Eat Submit During 2021, Pride bought inventory for $112.000 and sold it to Strong for $140,000. Only half of the inventory purchase price had been remitted to Pride by Strong at year-end. As of December 31, 2021, 60% of these goods remained in the company's possession What is the consolidated total for equipment prot) at December 31, 20212 Multiple Choice $1069.600 $952.000 $1,064,000 $1066,800 $1,058,400