Problem $5-11($Static$)($LO $5-2,5-3,5-5,5-7)$

On January $1,$ Jarel acquired $80$ percent of the outstanding voting stock of Suarez for $$260,000$ cash consideration. The remaining $20$

percent of Suarez had an acquisition$-$date fair value of $$65,000.$ On January $1,$ Suarez possessed equipment $($five$-$year remaining life$)$

that was undervalued on its books by $$25,000.$ Suarez also had developed several secret formulas that Jarel assessed at $$50,000.$

These formulas, although not recorded on Suarez's financial records, were estimated to have a $20-$year future life.

As of December $31,$ the financial statements appeared as follows:

Required:

Included in the preceding statements, Jarel sold inventory costing $$80,000$ to Suarez for $$100,000.$ Of these goods, Suarez still owns

$60$ percent on December $31.$ Compute the following amounts for the December $31$ consolidated financial statements for Jarel and

Suarez.

Note: Input all amounts as positive value.