IE $5-2($Algo$)$ Based on Problem $5-21$

Allison Corporation acquired $90$ percent of Bretton on January $1,2022.$ Of Bretton's total acquisition$-$date fair value, $$62,400$ was allocated to undervalued equipment $($with a $10-$year remaining life$)$ and $$83,200$ 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:

YearCostTransfer PriceRemaining at Year$-$End $($at transfer price$)2022$$$47,400$$$94,800$$$31,600202350,40084,00036,960202472,00096,00050,800$

On January $1,2023,$ Allison sold Bretton a building for $$58,000$ that had originally cost $$81,200$ but had only a $$34,800$ 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:

$$AllisonBrettonSales$$714,000$$$408,000$Cost of Goods Sold$448,800224,400$Operating Expenses$122,40081,600$Investment IncomeNot Given$0$Inventory$214,20091,800$Equipment $($net$)142,800126,000$Buildings $($net$)366,000206,000$

Required:

Determine consolidated totals for each of these account balances.

Intra$-$entity gross profit $-$ Inventory $1/1/24$

Intra$-$Entity Gross Profit $-$ Inventory $12/31/24$

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