Reference no: EM133163095
Question - On January 1, 2018, Adora Inc. acquired 80% of the outstanding voting common stock of Alvah Inc. for $364,000. There is no active market for Strong's stock. Of this payment, $28,000 was allocated to equipment (with a five-year life) that had been undervalued on Alvah's books by $35,000. Any remaining excess was attributable to goodwill, which has not been impaired. As of December 31, 2018, before preparing the consolidated worksheet, the financial statements appeared as follows:
Adora Inc. Alvah Inc.
Revenues $ 420,000 $ 280,000
Cost of goods sold (196,000) (112,000)
Operating expenses (28,000) (14,000)
Net income $ 196,000) $ 154,000
Retained earnings, 1/1/18 $ 420,000 $ 210,000
Net income (above) 196,000 154,000
Dividends paid 0 0
Retained earnings, 12/31/18 $ 616,000 $ 364,000
Cash and receivables $ 294,000 $ 126,000
Inventory 210,000 154,000
Investment in Strong Corp 364,000 0
Equipment (net) 616,000 420,000
Total assets $ 1,484,000 $ 700,000
Liabilities $ 588,000 $ 196,000
Common stock 280,000 140,000
Retained earnings, 12/31/18 (above) 616,000 364,000
Total liabilities and stockholders' equity $ 1,484,000 $ 700,000
During 2018, Adora bought inventory for $112,000 and sold it to Alvah for $140,000. Only half of the inventory purchase price had been remitted to Adora by Alvah at year-end. As of December 31, 2018, 60% of these goods remained in the company's possession.
A) What is the total of consolidated revenues?
B) What is the total of consolidated operating expenses?
C) What is the total of consolidated cost of goods sold?
D) What is the consolidated total of noncontrolling interest appearing in the balance sheet?
E) What is the consolidated total for equipment (net) at December 31, 2018?