What is the consolidated total for inventory at December 31?
On January 1, Jarel acquired 80 percent of the outstanding voting stock of Suarez for $260,000 cash consideration. The remaining 20 percent of Suarez had an acquisition-date fair value of $65,000. On January 1, Suarez possessed equipment (five-year remaining life) that was undervalued on its books by $25,000. Suarez also had developed several secret formulas that Jarel assessed at $50,000. These formulas, although not recorded on Suarez’s financial records, were estimated to have a 20-year future life.
As of December 31, the financial statements appeared as follows:
| Jarel | Suarez | ||||||
| Revenues | $ | (300,000 | ) | $ | (200,000 | ) | |
| Cost of goods sold | 140,000 | 80,000 | |||||
| Expenses | 20,000 | 10,000 | |||||
| Net income | $ | (140,000 | ) | $ | (110,000 | ) | |
| $ | (300,000 | ) | $ | (150,000 | ) | ||
| Net income | (140,000 | ) | (110,000 | ) | |||
| Dividends declared | 0 | 0 | |||||
| Retained earnings, 12/31 | $ | (440,000 | ) | $ | (260,000 | ) | |
| Cash and receivables | $ | 210,000 | $ | 90,000 | |||
| Inventory | 150,000 | 110,000 | |||||
| Investment in Suarez | 260,000 | 0 | |||||
| Equipment (net) | 440,000 | 300,000 | |||||
| Total assets | $ | 1,060,000 | $ | 500,000 | |||
| Liabilities | $ | (420,000 | ) | $ | (140,000 | ) | |
| Common stock | (200,000 | ) | (100,000 | ) | |||
| Retained earnings, 12/31 | (440,000 | ) | (260,000 | ) | |||
| Total liabilities and equities | $ | (1,060,000 | ) | $ | (500,000 | ) | |
Included in the preceding statements, Jarel sold inventory costing $80,000 to Suarez for $100,000. Of these goods, Suarez still owns 60 percent on December 31.
What is the consolidated total for inventory at December 31?
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