equired: Show and label calculations. Calculate consolidated ending retained earnings reported on PAR Inc.'s Dec 31, 2020 balance sheet.
On January 1, 2016, PAR Inc. purchased 65% of the shares of SUB Co. for $8,000 when
At the date of the acquisition, trademarks with a fair value of $500 were identified that were not recorded on the books of SUB.
Also, the building was valued at $200 higher than book value. The trademarks had a remaining useful life of 8 years, and the building had a remaining useful life of 40 years, at that time.
PAR booked a goodwill impairment loss on goodwill resulting from the SUB acquisition of $136 in 2019.
During 2020, PAR Inc. reported income of $800 and Sub Co. $570. Dividends of $100 were paid by Sub to PAR.
At December 31, 2020, the entity retained earnings of PAR Inc. is $16,500 and SUB Co. is $10,700.
At the end of 2019, PAR had $190 of inventory still on its books that was purchased from SUB (cost $145).
At the end of 2020, PAR had $115 of inventory still on its books that was purchased from SUB (cost $70).
Required: Show and label calculations.
Calculate consolidated ending retained earnings reported on PAR Inc.'s Dec 31, 2020 balance sheet.
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