Compute the consolidated balances for Innovus and ChipTech by completing the provided worksheet. **Week 4****On January 1, 2020, Innovus, Inc. acquired 100 percent of the common stock of ChipTech Company for $670,000 in cash and other fair-value consideration. ChipTech's fair value was allocated among its net assets as follows:****Fair value of consideration transferred for ChipTech**- $670,000 **Book value of ChipTech:**- Common stock and Additional Paid-In Capital (APIC): $130,000 - Retained earnings: $370,000 - Excess fair value over book value to: $500,000 - Trademark (10-year remaining life): $40,000 - Existing technology (5-year remaining life): $80,000 - Goodwill: $120,000 - Total: $170,000 + $330,000 = $500,000 **The December 31, 2021, trial balances for the parent and subsidiary follow (there were no intra-entity payables on that date):****| Account | Innovus | ChipTech |****|---------|---------|----------|**| Revenues | $ (960,000) | $(240,000) || Cost of goods sold | 590,000 | 90,000 || Depreciation expense | 100,000 | 30,000 || Amortization expense | 8,000 | - || Dividend income | (12,000) | - || Interest Expense | 75,000 | 15,000 || Income (960,000) | (240,000) || Retained earnings 1/1/21 | $ (1,575,000) | $ (450,000) || Net income | (207,000) | (57,000) || Dividends declared | 12,000 | 5,000 || Retained earnings 12/31/21 | $ (1,610,000) | $ (485,000) || Cash | 96,000 | 35,000 || Current Items | $280,000 | 120,000 || Investment in ChipTech | $685,000 | - || Trademark | 32,000 | - || Equipment | 400,000 | 225,000 || Technology | 48,000 | - || Goodwill | ## Financial Consolidation StatementThis document represents a financial consolidation statement for two companies, Innovus and ChipTech. The consolidation entries and the resulting consolidated financials are provided to present a unified overview of their financial status. Below is a detailed breakdown:### Income Statement**Innovus**1. **Revenues**: $(990,000)2. **Cost of Goods Sold**: $500,0003. **Depreciation Expense**: $100,0004. **Amortization Expense**: $55,0005. **Dividend Income**: $(40,000)6. **Net Income**: $(375,000)**ChipTech**1. **Revenues**: $(210,000)2. **Cost of Goods Sold**: $90,0003. **Depreciation Expense**: $5,0004. **Amortization Expense**: $18,0005. **Net Income**: $(97,000)### Retained Earnings**Innovus**1. **Retained Earnings 1/1**: $(1,555,000)2. **Net Income**: $(375,000)3. **Dividends Declared**: $250,0004. **Retained Earnings 12/31**: $(1,680,000)**ChipTech**1. **Retained Earnings 1/1**: $(450,000)2. **Net Income**: $(97,000)3. **Dividends Declared**: $40,0004. **Retained Earnings 12/31**: $(507,000)### Balance Sheet**Assets**1. **Current Assets**: - Innovus: $960,000 - ChipTech: $355,0002. **Investment in ChipTech**: - Innovus: $670,0003. **Equipment (Net)**: - Innovus: $765,000 - ChipTech: $225,0004. **Trademark**: - Innovus: $235,000 - ChipTech: $100,0005. **Existing Technology**: - ChipTech: $45,0006. **Goodwill**: - Innovus: $450,000**Total Assets**:- Innovus: $3,080,

Consolidated balance sheet (BS) states the financial position of the affiliated group of the…

on January 1, 2020, Innovus, Inc., acquired 100 percent of the common stock of Chip Tech Company for $670,000 in cash and air-value consideration. Chip Tech's fair value was allocated among its net assets as follows: $670,000 Fair value of consideration transferred for ChipTech Book value of Chip Tech: Common stock and Additional Paid-In Capital (APIC) $130,000 370,000 500,000 Retained earnings Excess fair value over book value to 170,000 Trademark (10-year remaining life) $ 40,000 80,000 120,000 Existing technology (5-year remaining life) $ 50,000 Goodwill The December 31, 2021, trial balances for the parent and subsidiary follow (there were no intra-entity payables on that date): ChinTech