What is the total of consolidated revenues

Assignment Help Accounting Basics

Reference no: EM133363315

Question: 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 (5-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:

Jarel	Suarez
Revenues	$(300,000)	$(200,000)
Cost of Goods Sold	$140,000	$80,000
Expenses	$20,000	$10,000
Net Income	$(140,000)	$(110,000)

	Jarel	Suarez
Retained Earnings, 1/1	$(300,000)	$(150,000)
Net Income	$(140,000)	$(110,000)
Dividends Declared	-0-	-0-
Retained Earnings 12/31	$(440,000)	$(260,000)

	Jarel	Suarez
Cash and Receivables	$210,000	$90,000
Inventory	$150,000	$110,000
Investment in Suarez	$260,000	-0-
Equipment (net)	$440,000	$300,000
Total assets	$1,060,000	$500,000

	Jarel	Suarez
Liabilities	$(420,000)	$(140,000)
Common Stock	$(200,000)	$(100,000)
Retained Earnings 12/31	$(440,000)	$(260,000)
Total Liabilities and Equities	$(1,060,000)	$(500,000)

During the year, Jarel bought inventory for $80,000 and sold it to Suarez for $100,000. Of these goods, Suarez still owns 60 percent on December 31.

What is the total of consolidated revenues?

Reference no: EM133363315

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