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Problem 5-11(Static)(LO 5-2,5-3,5-5,5-7) On January 1, Jarel acquired 80 percent of the outstanding...

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Accounting

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.
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