What is the total of consolidated revenues at December 31, 2021? Answer Options: $4,920,000 $5,070,000 $4,882,500 $5,320,00 $4,820,000 2. What is the total of consolidated cost of goods sold at December 31, 2021? Answer Options: $3,934,500 $3,822,000 $3,859,500 $3,960,000 $3,922,000 3. What is the consolidated total for inventory at December 31, 2021?
. On January 1, 2021, Paramount, Inc. acquired 80% of the outstanding voting common stock of Cinema Corp. for $364,000. There is no active market for Cinema’s stock. Of this payment, $75,000 was allocated to equipment (with a five-year life) that had been undervalued on Cinema's books by $31,250. Any remaining excess was attributable to
As of December 31, 2021, before preparing the consolidated worksheet, the financial statements appeared as follows:
| Paramount, Inc. | Cinema Corp. | |||
| Revenues | $ 4,800,000 | $ 270,000 | ||
| Cost of goods sold | (3,960,000) | (112,000) | ||
| Operating expenses | (27,000) | (16,000) | ||
| Net income | $ 813,000 | $ 142,000 | ||
| $ 420,000 | $ 210,000 | |||
| Net income (above) | 813,000 | 142,000 | ||
| Dividends paid | - | - | ||
| Retained earnings, 12/31/21 | $ 1,233,000 | $ 352,000 | ||
| Cash and receivables | $ 294,000 | $ 126,000 | ||
| Inventory | 210,000 | 154,000 | ||
| Investment in Strong Corp | 364,000 | - | ||
| Equipment (net) | 616,000 | 420,000 | ||
| Total assets | $ 1,484,000 | $ 700,000 | ||
| Liabilities | $ 588,000 | $ 196,000 | ||
| Common stock | 280,000 | 140,000 | ||
| Retained earnings, 12/31/21 (above) | 1,233,000 | 352,000 | ||
| Total liabilities and |
$ 2,101,000 | $ 688,000 |
During 2021, Paramount bought inventory for $187,500 and sold it to Cinema for $250,000. Only half of the inventory purchase price had been remitted to Paramount by Cinema at year-end. As of December 31, 2021, 60% of these goods remained in the company's possession.
1.What is the total of consolidated revenues at December 31, 2021?
Answer Options: $4,920,000 $5,070,000 $4,882,500 $5,320,00 $4,820,000
2. What is the total of consolidated cost of goods sold at December 31, 2021?
Answer Options: $3,934,500 $3,822,000 $3,859,500 $3,960,000 $3,922,000
3. What is the consolidated total for inventory at December 31, 2021?
Answer Options: $326,500 $301,500 $401,500 $239,000 $364,000
4. What is the total of consolidated operating expenses (includes
Answer Options: $36,750 $48,000 $43,000 $38,000 $49,250
5. What is the consolidated total for equipment (net) at December 31, 2021?
Answer Options: $1,062,250 $1,066,000 $1,061,000 $1,011,000 $1,056,000
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