Allison Corporation acquired 90 percent of Bretton on January 1, 2022. Of Bretton's total acquisition-date fair value, $65,100 wasallocated to undervalued equipment (with a 10-year remaining life) and $86,800 was attributed to franchises (to be written off over a20-year period).Since the takeover, Bretton has transferred inventory to its parent as follows:Remaining at Year-YearCostTransfer Price End (at transfer20222023$50,10053,10075,375price)$33,4002024$100,20088,500100,50039,16551,700On January 1, 2023, Allison sold Bretton a building for $67,000 that had originally cost $93,800 but had only a $40,200 book value atthe date of transfer. The building is estimated to have a five-year remaining life (straight-line depreciation is used with no salvagevalue).Selected figures from the December 31, 2024, trial balance of these two companies are as follows:SalesAllison$729,750Bretton$417,000Cost of Goods Sold458,700229,350Operating Expenses125,10083,400InventoryInvestment IncomeEquipment (net)Buildings (net)Required:Not Given0218,92593,825145,950144,000384,000224,000Determine consolidated totals for each of these account balances.Intra-entity gross profit - Inventory 1/1/24• Intra-Entity Gross Profit - Inventory 12/31/24Determine consolidated totals for each of these account balances.SalesCost of Goods SoldOperating ExpensesInvestment IncomeInventoryEquipment (net)Buildings (net)Intra-entity gross profit - Inventory 1/1/24Gross ProfitGross Profit RateRemaining InventoryIntra-Entity Gross ProfitIntra-Entity Gross Profit - Inventory 12/31/24Gross ProfitGross Profit RateRemaining InventoryIntra-Entity Gross ProfitConsolidated Totals$1,046,250$587,550

The consolation is the accounting process in which the financial results of the parent company and…

Answered: Required: Determine consolidated totals…

Business

Accounting

Required: Determine consolidated totals for each of these account balances.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Allison Corporation acquired 90 percent of Bretton on January 1, 2022. 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: Year 2022 2023 2024 Remaining at Year-End Cost $45,000 48,000 Transfer Price (at transfer price) 69,000 $90,000 80,000 92,000 $30,000 35,000 50,000 On January 1, 2023, 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, 2024, trial balance of these two companies are as follows: Sales Cost of Goods Sold Operating Expenses Investment Income Inventory Equipment (net) Buildings (net) Required:…
Allison Corporation acquired 90 percent of Bretton on January 1, 2016. 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:On January 1, 2017, 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, 2018, trial balances of these two companies are as follows:Determine consolidated totals for each of these account balances.
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The following are several figures reported for Allister and Barone as of December 31, 2021: Allister Barone Inventory $ 540,000 $ 340,000 Sales 1,080,000 880,000 Investment income not given Cost of goods sold 540,000 440,000 Operating expenses 250,000 320,000 Allister acquired 90 percent of Barone in January 2020. In allocating the newly acquired subsidiary's fair value at the acquisition date, Allister noted that Barone had developed a customer list worth $64,000 that was unrecorded on its accounting records and had a five-year remaining life. Any remaining excess fair value over Barone's book value was attributed to goodwill. In 2021, Barone sells inventory costing $134,000 to Allister for $188,000. Of this amount, 15 percent remains unsold in Allister's warehouse at year-end. Determine balances for the following items that would appear on Allister's consolidated financial statements for 2021: Inventory:________ Sales:_______ Cost of goods…
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