Question 8 (3.5 points) 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 (5-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 (partial) financial statements appeared as follows: Revenues. Cost of goods sold. Expenses Net Income Jarel $ 200,000) 140,000 20,000 $ 140,000) Suarez SC200,000) 80,000 10,000 S.110.000 During the year, Jarel bought inventory for $80,000 and sold it to Suarez for $100,000. Of these goods, Suarez still owns 60 percent on December 31. What is the total of consolidated revenues? $500,000 $460,000 $420,000 $400,000 Question 2 (3.5 points) 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 (5-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 (partial) financial statements appeared as follows: Revenues. Cost of goods sold. Expenses. Not Income Jared $ 600,000) 140,000 20,000 5 (140,000) Suarex 5(200,000) 80,000 10.000 SC110.000) During the year, Jarel bought inventory for $80,000 and sold it to Suarez for $100,000. Of these goods, Suarez still owns 60 percent on December 31. What is the total of consolidated cost of goods sold? $145,000 $132,000 $152.000 L $140,000