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Question 422 pts On January 1, 2020, Adamson, Inc. acquired the outstanding voting common stock of Skyview Corp. for $600,000. Of this payment, $85,000 was

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Question 422 pts On January 1, 2020, Adamson, Inc. acquired the outstanding voting common stock of Skyview Corp. for $600,000. Of this payment, $85,000 was allocated to undervalued equipment (with a five-year life). Any remaining excess was attributable to goodwill. During 2020, Adamson bought inventory for $44,000 and sold it to Skyview for $98,500. 60% of these goods were still in the company's possession on December 31. The financial statements of the two companies as of December 31, 2020 are presented below. Adamson Skyview Sales revenue $750,000 $440,000 Cost of goods sold -414,975 -69,000 Gross profit 335,025 371,000 Operating expenses -65,000 -75,000 Income (loss) from subsidiary 246,300 Net Income 5516, 325 $296 000 Retained Earnings, 1/1/20 5670,000 $258,000 Net Income $516,325 $296,000 Retained Earnings, 1/1/20 $670,000 $258,000 Net income 516,325 296,000 Dividends - 15000 -12000 Retained Earnings, 12/31/20 $1,171,325 $542,000 Cash and receivables $325,000 590,000 Inventory 440,000 126,000 Equity investment 834,300 Property, plant & equipment (Net) 1.273,025 ! 635,000 Total Assets $2,872,325 $851,000 Accounts payable $652,000 $75,000 Accrued liabilities 245,000 56,000 Common stock 152,000 34,000 Additional paid-in capital 652,000 144,000 Retained Earnings, 12/31/20 1171 325 542,000 Total Liabilities and Equities $2,872,325 $851,000 What is consolidated revenues? a. $ 440,000 b. $1,091,500 c. $1,190,000 d $1,146,000

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