On 1/1/2020, Company AAA purchased 80% of the shares of Company BBB for $ 10,000. On that date, Company BBB had shareholders' equity of capital $ 6,000, additional paid-in capital $ 2,000, and retained earnings $ 2,000.

On 1/1/2020, Company BBB had overvalued inventory of $ 1,000 (all sold in 2020), undervalued land by $ 2,000, and undervalued equipment by $ 1,400 (7 years expected useful life).

The following are the statements of financial position for both companies at 31/12/2020.

In 2020, BBB declared dividends of $ 200 and had net income $ 2,000

31/12/2020	AAA	BBB	Dr.	Cr.	Consolidation
Cash	2,000	1,000
Accounts receivable	4,000	3,000
Dividends receivable	160	-
Inventory	1,000	2,000
Equipment	10,000	4,000
Buildings	20,000	2,000
Land	40,000	4,000
Investment in BBB	12,080	-
Goodwill	-	-
TOTAL	89,240	16,000
Accounts payable	6,640	4,000
Dividends payable	-	200
Capital stock	50,000	6,000
Additional paid-in capital	20,000	2,000
Retained earnings	12,600	3,800
Noncontrolling interest	-	-
TOTAL	89,240	16,000

Required

As at 31/12/2020, compute the consolidated amount for the following , showing your detailed computations

1-     The consolidated amount for cash

2-     The consolidated amount for inventory

3-     The consolidated amount for equipment

4-     The consolidated amount for land

5-     The consolidated amount for goodwill

6-     The consolidated amount for accounts payable

7-     The consolidated amount for dividends payable

8-     The consolidated amount for additional paid in capital

9-     The consolidated amount for noncontrolling interest

10-  The total assets amount for the consolidated financial statements

Answer rating: 100% (QA)

Solution Requirement 1 The amount of consolidated ... View the full answer