Allison Corporation acquired 90 percent of Bretton on January 1, 2022. Of Bretton's total acquisition-date fair value, $60,600 was allocated to undervalued equipment (with a 10-year remaining life) and $80,800 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: Year Cost Transfer Price Remaining at Year-End (at transfer price) 2022 $45,600 $91,200 $30,400 2023 48,600 81,000 35,490 2024 69,750 93,000 50,200 On January 1, 2023, Allison sold Bretton a building for $52,000 that had originally cost $72,800 but had only a $31,200 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, 2024, trial balance of these two companies are as follows: Allison Bretton Sales $703,500 $402,000 Cost of Goods Sold 442,200 221,100 Operating Expenses 120,600 80,400 Investment Income Not Given 0 Inventory 211,050 90,450 Equipment (net) 140,700 114,000 Buildings (net) 354,000 194,000 Required: Determine consolidated totals for each of these account balances. Intra-entity gross profit - Inventory 1/1/24 Intra-Entity Gross Profit - Inventory 12/31/24 Navigation: Use the Open Excel in New Tab button to launch this question. When finished in Excel, use the Save and Return to Assignment button in the lower right to return to Connect.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Question

Allison Corporation acquired 90 percent of Bretton on January 1, 2022. Of Bretton's total acquisition-date fair value, $60,600 was allocated to undervalued equipment (with a 10-year remaining life) and $80,800 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:

Year	Cost	Transfer Price	Remaining at Year-End (at transfer price)
2022	$45,600	$91,200	$30,400
2023	48,600	81,000	35,490
2024	69,750	93,000	50,200

On January 1, 2023, Allison sold Bretton a building for $52,000 that had originally cost $72,800 but had only a $31,200 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, 2024, trial balance of these two companies are as follows:

	Allison	Bretton
Sales	$703,500	$402,000
Cost of Goods Sold	442,200	221,100
Operating Expenses	120,600	80,400
Investment Income	Not Given	0
Inventory	211,050	90,450
Equipment (net)	140,700	114,000
Buildings (net)	354,000	194,000

Required:

Determine consolidated totals for each of these account balances.

Intra-entity gross profit - Inventory 1/1/24
Intra-Entity Gross Profit - Inventory 12/31/24

Navigation:

Use the Open Excel in New Tab button to launch this question.
When finished in Excel, use the Save and Return to Assignment button in the lower right to return to Connect.

Expert Solution