What is the consolidated total for equipment (net) at December 31?

a. $765,000.

b. $740,000.

c. $760,000.

d. $735,000

Required information 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 Suarez (300,000) $(200,000) Revenues Cost of goods sold 140,000 80,000 20,000 10,000 Expenses Net income $(110,000) (140,000) $ (150,000) (110,000) Retained earnings, 1/1 Net income $ (300,000) (140,000) Dividends declared $ (260,000) Retained earnings, 12/31 (440,000) Cash and receivables 210,000 150,000 $ 90,000 S Inventory 110,000 Investment in Suarez 260,000 440,000 0 Equipment (net) 300,000 $ 1,060,000 Total assets $500,000 Liabilities Common stock $(140,000) (100,000) (260,000) (420,000) (200,000) (440,000) Retained earnings, 12/31 $(1,060,000) $(500,000) Total liabilities and equities Included in the above statements, Jarel sold inventory costing $80,000 to Suarez for $100,000. Of these goods, Suarez still owns 60 percent on December 31