Allison Corporation acquired 90 percent of Bretton on January 1, 2022. Of Bretton’s total acquisitiondate 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, 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 fiveyear remaining life (straight-line depreciation is used with no salvage value).

Selected figures from the December 31, 2024, trial balances of these two companies are as follows:

Determine consolidated totals for each of these account balances.

Transcribed Image Text:

Year 2022 2023 2024 Cost $45,000 48,000 69,000 Transfer Price $90,000 80,000 92,000 Remaining at Year-End $30,000 (at transfer price) 35,000 (at transfer price) 50,000 (at transfer price)