On January 1, 2021, Wallace, Inc. acquired 80% of the outstanding voting common stock of Brennan...

 
 

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On January 1, 2021, Wallace, Inc. acquired 80% of the outstanding voting common stock of Brennan Corp. for $444,000. There is no active market for Brennan's stock. Of this payment, $48,000 was allocated to equipment (with a five-year life) that had been undervalued on Brennan's books by $60,000. Any remaining excess was attributable to goodwill which has not been impaired. As of December 31, 2021, before preparing the consolidated worksheet. the financial statements appeared as follows: Wallace, Inc. Brennan Corp. Revenues $540.000 $310.000 Cost of goods sold (252,000) (124.000) Operating expenses (36.000) (15,500) Net income 252,000 170,500 Retained earnings, 1/1/21 420.000 210,000 Net income (above) 252,000 170.500 Dividends paid 0 0 Retained earnings, 12/31/21 672,000 380,500 Cash and receivables 294,000 126,000 Inventory 210,000 154,000 Investment in Brennan Company 444.000 0 Equipment (net) 616,000 420,000 Total assets 1,564.000 700,000 Liabilities 588,000 196,000 Common stock 304,000 123,500 Retained earnings (above) 672,000 380,500 Total liabilities and stockholders' 1,564,000 700,000 equity During 2021. Wallace bought inventory for $150.000 and sold it to Brennan for $187,500. 60% of these goods were still in the company's possession on December 31, 2021. Question 4 3 pts What is the total of consolidated revenues? O $662.500 O $788,000. O $700,000 O $850,000 O $1.037,500 Question 5 What is the consolidated total of non-controlling interest appearing in the balance sheet? O $142.700 $122.900 O $120.500 O $147,500 O $145.100 3 pts On January 1, 2021, Wallace, Inc. acquired 80% of the outstanding voting common stock of Brennan Corp. for $444,000. There is no active market for Brennan's stock. Of this payment, $48,000 was allocated to equipment (with a five-year life) that had been undervalued on Brennan's books by $60,000. Any remaining excess was attributable to goodwill which has not been impaired. As of December 31, 2021, before preparing the consolidated worksheet. the financial statements appeared as follows: Wallace, Inc. Brennan Corp. Revenues $540.000 $310.000 Cost of goods sold (252,000) (124.000) Operating expenses (36.000) (15,500) Net income 252,000 170,500 Retained earnings, 1/1/21 420.000 210,000 Net income (above) 252,000 170.500 Dividends paid 0 0 Retained earnings, 12/31/21 672,000 380,500 Cash and receivables 294,000 126,000 Inventory 210,000 154,000 Investment in Brennan Company 444.000 0 Equipment (net) 616,000 420,000 Total assets 1,564.000 700,000 Liabilities 588,000 196,000 Common stock 304,000 123,500 Retained earnings (above) 672,000 380,500 Total liabilities and stockholders' 1,564,000 700,000 equity During 2021. Wallace bought inventory for $150.000 and sold it to Brennan for $187,500. 60% of these goods were still in the company's possession on December 31, 2021. Question 4 3 pts What is the total of consolidated revenues? O $662.500 O $788,000. O $700,000 O $850,000 O $1.037,500 Question 5 What is the consolidated total of non-controlling interest appearing in the balance sheet? O $142.700 $122.900 O $120.500 O $147,500 O $145.100 3 pts

Answer rating: 100% (QA)

4 Option A is correct 662500 Total of consolidation re... View the full answer