Compute the consolidated balances for Innovus and ChipTech by completing the provided worksheet. 2022neabusouncementsdulesesadesopleedia Galleryy MediautoringBookstoreDeVry WebexMy SoftwareSearchMH ACP ACCT405(1)A34P@2WScommandweek 4TABLE OF CONTENTSOn January 1, 2020, Innovus, Inc., acquired 100 percent of the common stock of ChipTech Company for $670,000 in cash and otherfair-value consideration. ChipTech's fair value was allocated among its net assets as follows:Fair value of consideration transferred for ChipTech$670,000Book value of ChipTech:Common stock and Additional Paid-In Capital (APIC)$130,000Retained earnings370,000500,000Excess fair value over book value to170,000Trademark (10-year remaining life)$ 40,000Existing technology (5-year remaining life)80,000120,000Goodwill$ 50,000The December 31, 2021, trial balances for the parent and subsidiary follow (there were no intra-entity payables on that date):InnovasChip TechRevenues$ (990,000)Cost of goods sold500,000$(210,000)90,0005,000Depreciation expense100,000IS,00055,000Amortization expense(40,000)-0-Dividend income$ (375,000)$ (97,000)Net income$(1,555,000)$(450,000)Retained earnings 1/1/21(375,000)(97,000)Net income40.000250,000Dividends declaredRetained earnings 12/31/21$(1,680,000)$(507,000)$ 960,000$ 355,000Current assets.Investment in ChipTech670,000225,000765,000Equipment (net)235,000100,000Trademark-0-45.000Existing technology450.000-0-Goodwill$ 3,080.000$ 725.000Total assetsS (780,000)(88,000)Liabilities(500,000)(100,000)Common stock(30,000)(120,000)Additional paid-in capital(507,000)Retained earnings 12/31/21(1,680,000)$(3,000,000)$(725.000)Total liabilities and equity(3)888200DDDFOFS#380EDC$4RF%5VTG6BMacBook Air&7Y33F7UINH8J-D-IIM(9KO<F-0>OL3F 10PHcommandV.....F11{+[(39)option11?I912I1del 123 Revenues4 Cost of Goods Sold5 Depreciation Expense6 Amortization Expense7 Dividend Income8Net Income90 Retained Earnings 1/11 Net Income2 Dividends Declared3 Retained Earnings 12/3145 Current Assets6 Investment in Chip Tech789Equipment (net)TrademarkExisting Technology2 Goodwill3 Total Assets45 Liabilities5 Common StockAdditional Paid-in-CapitalRetained Earnings 12/31Total Liabilities and Equity--Sheet1iTReady+CChip Tech(210,000)(990,000)500,00090,000100,0005,00055,00018,000(40,000)(375,000)(97,000)(1,555,000) (450,000)(375,000)(97,000)250,00040,000(1,680,000)(507,000)960,000 355,000670,000765,000 225,000235,000100,00045,000450,0003,080,000725,000(780,000)(88,000)(500,000)(100,000)(120,000)(30,000)(1,680,000) (507,000)(3,080,000) (725,000)0BInnovusDEFConsolidation EntriesDebitGCreditHConsolidated

Consolidated balance sheet (BS) states the financial position of the affiliated group of the…

on January 1, 2020, Innovus, Inc., acquired 100 percent of the common stock of Chip Tech Company for $670,000 in cash and air-value consideration. Chip Tech's fair value was allocated among its net assets as follows: $670,000 Fair value of consideration transferred for ChipTech Book value of Chip Tech: Common stock and Additional Paid-In Capital (APIC) $130,000 370,000 500,000 Retained earnings Excess fair value over book value to 170,000 Trademark (10-year remaining life) $ 40,000 80,000 120,000 Existing technology (5-year remaining life) $ 50,000 Goodwill The December 31, 2021, trial balances for the parent and subsidiary follow (there were no intra-entity payables on that date): ChinTech

on January 1, 2020, Innovus, Inc., acquired 100 percent of the common stock of Chip Tech Company for $670,000 in cash and air-value consideration. Chip Tech's fair value was allocated among its net assets as follows: $670,000 Fair value of consideration transferred for ChipTech Book value of Chip Tech: Common stock and Additional Paid-In Capital (APIC) $130,000 370,000 500,000 Retained earnings Excess fair value over book value to 170,000 Trademark (10-year remaining life) $ 40,000 80,000 120,000 Existing technology (5-year remaining life) $ 50,000 Goodwill The December 31, 2021, trial balances for the parent and subsidiary follow (there were no intra-entity payables on that date): ChinTech

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter13: Investments And Long-term Receivables

Section: Chapter Questions

Problem 13RE

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