Question

On January 1, Jarel acquired 80 percent of the outstanding voting stock of Suarez for $260,000...

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
Revenues $ (300,000 ) $ (200,000 )
Cost of goods sold 140,000 80,000
Expenses 20,000 10,000
Net income $ (140,000 ) $ (110,000 )
Retained earnings, 1/1 $ (300,000 ) $ (150,000 )
Net income (140,000 ) (110,000 )
Dividends declared 0 0
Retained earnings, 12/31 $ (440,000 ) $ (260,000 )
Cash and receivables $ 210,000 $ 90,000
Inventory 150,000 110,000
Investment in Suarez 260,000 0
Equipment (net) 440,000 300,000
Total assets $ 1,060,000 $ 500,000
Liabilities $ (420,000 ) $ (140,000 )
Common stock (200,000 ) (100,000 )
Retained earnings, 12/31 (440,000 ) (260,000 )
Total liabilities and equities $ (1,060,000 ) $ (500,000 )

Included in the preceding statements, Jarel sold inventory costing $80,000 to Suarez for $100,000. Of these goods, Suarez still owns 60 percent on December 31.

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

What is the consolidated total for inventory at December 31?

What is the total of consolidated revenues?

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