Data for Questions 4 On January 1, 2018, Pride, Inc. acquired 80% of the outstanding voting common stock of Strong Corp. for $364,000. The non-controlling interest had a fair value of $91,000 on that day. However, equipment in Strong's record was undervalued by $35,000 (with a five-year life). Any remaining excess was attributable to goodwill which has not been impaired. As of December 31, 2018, before Preparing the consolidated worksheet, the financial statements appeared as follows: Pride Inc Strong Corp Revenues $420,000 $280,000 Cost of goods sold (196,000) (112,000) Operating expenses (28,000) (14,000) Net income 196,000 154,000 Retained earnings, 1/1/13 420,000 210,000 Net income (above) 196,000 154,000 Dividends paid 0 Retained earnings, 12/31/13 616,000 364,000 Cash and receivables 294,000 126,000 Inventory 210,000 154,000 Investment in Strong Corp 364,000 0 Equipment (net) 616,000 420,000 Total assets 1,484,000 700,000 Liabilities 588,000 196,000 Common stock 280,000 140,000 Retained earnings, 12/31/13 (above) 616,000 364,000 Total liabilities and stockholders equity $1,484.000 |$700,000 During 2018, Strong bought inventory for $112,000 and sold it to Pride for $140,000. 60% of these goods were still in the company's possession on December 31, 2018