Use the following data for Problems 11-16: 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: Revenues Cost of goods sold Expenses Net income Retained earnings, 1/1 Net income Dividends declared Retained earnings, 12/31. Cash and receivables Inventory Investment in Suarez Equipment (net) Total assets Jarel $ (300,000) 140,000 20,000 $ (140,000) $ (300,000) (140,000) --0- $ (440,000) $ 210,000 150,000 260,000 440,000 $ 1,060,000 $ (420,000) (200,000) (440,000) $(1,060,000) Suarez $(200,000) 80,000 10,000 $(110,000) $(150,000) (110,000) -0- $(260,000) $ 90,000 110,000 -O- 300,000 $ 500,000 $(140,000) (100,000) (260,000) $(500,000) Liabilities Common stock Retained earnings, 12/31 Total liabilities and equities 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. LO 5-3 16. What is the consolidated total for inventory at December 31? a $240,000 b. $248,000 c. $250,000 d. $260,000 LORDROLLEC