On January $1,2020,$ Innovus, Inc., acquired $100\%$ of the common stock of ChipTech Company for $$670,000$ in cash and other fair$-$value consideration. ChipTech's fair value was allocated among its net assets as follows.

Fair value of consideration transferred for ChipTech $$670,000$

Book value of ChipTech:

Common stock and Additional Paid$-$In Capital $($APIC$)$

Retained Earnings

Excess fair value over book value to

Trademark $(10-$year remaining life$)$

Existing technology $(5-$year remaining life$)$

Goodwill $$130,000$

$370,000$

$$40,000$

$80,000$

$500,000$

$170,000$

$120,000$

$50,000$

The December $31,2021,$ trial balances for the parent and subsidiary follow $($there were no intra$-$entity payables on that date$).$

Innovus ChipTech

Revenues $ $(990,000)$ $ $(210,000)$

Cost of goods sold $500,00090,000$

Depreciation expense $100,0005,000$

Amortization expense $55,00018,000$

Dividend income

Net income $(40,000)$

$ $(375,000)-0-$

$ $(97,000)$

Retained earnings $(1/1/21)$

Net income

Dividends declared

Retained earnings $12/31/21$ $ $(1,555,000)$

$(375,000)$

$250,000$

$ $(1,680,000$ $ $(450,000)$

$(97,000)$

$40,000$

$ $(507,000)$

Current assets $ $960,000$ $ $355,000$

Investment in ChipTech $670,000$

Equipment $($net$)765,000225,000$

Trademark $235,000100,000$

Existing technology

Goodwill

Total assets $-0-$

$450,000$

$ $3,080,00045,000$

$-0-$

$ $725,000$

Liabilities $ $(780,000)(88,000)$

Common stock $(500,000)(100,000)$

Additional paid$-$in capital $(120,000)(30,000)$

Retained earnings $(12/31/21$

Total liabilities and equity $(1,680,000)$

$ $(3,080,000)(507,000)$

$ $(725,000)$On January $1,2020,$ Innovus, Inc., acquired $100$ percent of the common stock of ChipTech Company for $$670,000$ in cash and other

fairvalue consideration. ChipTech's fair value was allocated among its net assets as follows:

Fair value of consideration transferred for ChipTech

$$670,000$

Book value of ChipTech:

Common stock and Additional Paid$-$In Capital $($APIC$)$

Retained earnings

Excess fair value over book value to

Trademark $(10-$year remaining life$)$

Existing technology $(5-$year remaining life$)$

Goodwill

The December $31,2021,$ trial balances for the parent and subsidiary follow $($there were no intra$-$entity payables on that date$)$:

Required

a$.$ Using Excel, compute consolidated balances for Innovus and ChipTech Either use a worksheet approach or compute the balances

directly.

PLEASE SHOW HOW TO ARRIVE AT ADJUSTMENTS,$/$Why the adjustment. please NOT JUST THE NUMBERS$/$answers$.$ STRUGGLING ALOT TO UNDERSTAND, I HAVE AN UNDERSTANDING BUT STILL CONFUSED.AM STILL CONFUSED. HAVE AN UNDERSTANDING BUT AM STILL CONFUSED., I HAVE AN UNDERSTANDING BUT AM STILL CONFUSED.