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On January 1, Jaref acquired 80 percent of the outstanding voting stock of Suarez for...

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Accounting

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On January 1, Jaref 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 Janualy 1, Starez possessed equipment (five-year remaining life) that was undervalued on its books by $25,000. Sunrez also had developed several secret formulas that Jarne assessed at $50,000, These formulas although not fecorded on Suarez's financlal records, were estmated to have a 20-year future llfe: As of December 3t, the financial statements appeared as follows: Required: included in the preceding statements, Jarel sold irventory costing $80,000 to Suarez for $100,000. Of these goods, Suarez stil 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

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