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Allison Corporation acquired 90 percent of Bretton on January 1, 2019. Of Bretton's total acquisition-date fair value, $60,000 was allocated to undervalued equipment (with a 10-year remaining life) and $80,000 was attributed to franchises (to be written off over a 20-year period). Since the takeover, Bretton has transferred Inventory to its parent as follows: Transfer Year Cost Price 2019 $ 45,000 $90,000 2020 48,000 80,000 2021 69,000 92,000 On January 1, 2020, Allison sold Bretton a building for $50,000 that had originally cost $70,000 but had only a $30,000 book value at the date of transfer. The building is estimated to have a five-year remaining life (straight-line depreciation is used with no salvage value). Selected figures from the December 31, 2021, trial balances of these two companies are as follows: Bretton $ 400,000 220,000 80,000 0 90,000 110,000 190,000 Sales Cost of goods sold Operating expenses Investment income Inventory Remaining at Year-End 30,000 (at transfer price) 35,000 (at transfer price) 50,000 (at transfer price) Equipment (net) Buildings (net) Allison $ 700,000 440,000 120,000 Not given 210,000 140,000 350,000 Determine consolidated totals for each of these account balances. Consolidated Totals

Allison Corporation acquired 90 percent of Bretton on January 1, 2019. Of Bretton's total acquisition-date fair value, $60,000 was allocated to undervalued equipment (with a 10-year remaining life) and $80,000 was attributed to franchises (to be written off over a 20-year period). Since the takeover, Bretton has transferred Inventory to its parent as follows: Transfer Year Cost Price 2019 $ 45,000 $90,000 2020 48,000 80,000 2021 69,000 92,000 On January 1, 2020, Allison sold Bretton a building for $50,000 that had originally cost $70,000 but had only a $30,000 book value at the date of transfer. The building is estimated to have a five-year remaining life (straight-line depreciation is used with no salvage value). Selected figures from the December 31, 2021, trial balances of these two companies are as follows: Bretton $ 400,000 220,000 80,000 0 90,000 110,000 190,000 Sales Cost of goods sold Operating expenses Investment income Inventory Remaining at Year-End 30,000 (at transfer price) 35,000 (at transfer price) 50,000 (at transfer price) Equipment (net) Buildings (net) Allison $ 700,000 440,000 120,000 Not given 210,000 140,000 350,000 Determine consolidated totals for each of these account balances. Consolidated Totals

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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PLEASE SHOW ALL WORK!!!!!!!!!!!!!!! Allison Corporation acquired 90 percent of Bretton on January 1, 2019. Of Bretton's total acquisition-date fair value, $60,000 was allocated to undervalued equipment (with a 10-year remaining life) and $80,000 was attributed to franchises (to be written off over a 20-year period). Since the takeover, Bretton has transferred inventory to its parent as follows: Transfer Price Year Cost 2019 $45,000 $90,000 $ 2020 48,000 80,000 2021 69,000 92,000 Sales Cost of goods sold Operating expenses Investment income. Inventory Equipment (net) Buildings (net) On January 1, 2020, Allison sold Bretton a building for $50,000 that had originally cost $70,000 but had only a $30,000 book value at the date of transfer. The building is estimated to have a five-year remaining life (straight-line depreciation is used with no salvage value). Selected figures from the December 31, 2021, trial balances of these two companies are as follows: Sales Cost of goods sold Operating expenses Investment income Remaining at Year-End 30,000 (at transfer price) 35,000 (at transfer price) 50,000 (at transfer price) Inventory Equipment (net) Buildings (net) Allison $ 700,000 440,000 120,000 Not given 210,000 140,000 350,000 J Bretton $400,000 220,000 80,000 0 Determine consolidated totals for each of these account balances. 90,000 110,000 190,000 Consolidated Totals
Transcribed Image Text:PLEASE SHOW ALL WORK!!!!!!!!!!!!!!! Allison Corporation acquired 90 percent of Bretton on January 1, 2019. Of Bretton's total acquisition-date fair value, $60,000 was allocated to undervalued equipment (with a 10-year remaining life) and $80,000 was attributed to franchises (to be written off over a 20-year period). Since the takeover, Bretton has transferred inventory to its parent as follows: Transfer Price Year Cost 2019 $45,000 $90,000 $ 2020 48,000 80,000 2021 69,000 92,000 Sales Cost of goods sold Operating expenses Investment income. Inventory Equipment (net) Buildings (net) On January 1, 2020, Allison sold Bretton a building for $50,000 that had originally cost $70,000 but had only a $30,000 book value at the date of transfer. The building is estimated to have a five-year remaining life (straight-line depreciation is used with no salvage value). Selected figures from the December 31, 2021, trial balances of these two companies are as follows: Sales Cost of goods sold Operating expenses Investment income Remaining at Year-End 30,000 (at transfer price) 35,000 (at transfer price) 50,000 (at transfer price) Inventory Equipment (net) Buildings (net) Allison $ 700,000 440,000 120,000 Not given 210,000 140,000 350,000 J Bretton $400,000 220,000 80,000 0 Determine consolidated totals for each of these account balances. 90,000 110,000 190,000 Consolidated Totals
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