Transfer Price Remalning at Year-End $30,000 (at transfer price) 35,000 (at transfer price) 50,000 (at transfer price) Year Cost 2016 $45,000 48,000 $90,000 80,000 2017 69,000 92,000 Allison Bretton Sales. Cost of goods sold Operating expenses Investment income $700,000 440,000 $400,000 220,000 Not given 210,000 140,000 350,000 -0- Inventory Equipment (net) 110,000 190,000 Buildings (net)
Allison Corporation acquired 90 percent of Bretton on January 1, 2016. Of Bretton’s total acquisition-date fair value, $60,000 was allocated to undervalued equipment (with a 10-year remaining life) and $80,000 was attributed to franchises (to be written off over a 20-year period).
Since the takeover, Bretton has transferred inventory to its parent as follows:
On January 1, 2017, Allison sold Bretton a building for $50,000 that had originally cost $70,000 but had only a $30,000 book value at the date of transfer. The building is estimated to have a five-year remaining life (straight-line
Selected figures from the December 31, 2018,
Determine consolidated totals for each of these account balances.
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