On January 1, 2021, Pride, Inc

question 108

Multiple Choice

On January 1, 2021, Pride, Inc. acquired 80% of the outstanding voting common stock of Strong Corp. for $364,000. There is no active market for Strong's stock. Of this payment, $28,000 was allocated to equipment (with a five-year life) that had been undervalued on Strong's books by $35,000. Any remaining excess was attributable to goodwill, which has not been impaired.As of December 31, 2021, before preparing the consolidated worksheet, the financial statements appeared as follows: During 2021, Pride bought inventory for $112,000 and sold it to Strong for $140,000. Only half of the inventory purchase price had been remitted to Pride by Strong at year-end. As of December 31, 2021, 60% of these goods remained in the company's possession.What is the consolidated total for inventory at December 31, 2021?

• A) $336,000.
• B) $280,000.
• C) $364,000.
• D) $347,200.
• E) $349,300.

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Definitions:

Implementing Staff

Refers to the personnel responsible for carrying out strategies and plans within an organization.

High-Level Officials

Individuals holding senior or significant positions of authority and responsibility in an organization or government.

Timelines

Visual representations of a sequence of events or activities, typically showing a chronological order.

Diagnosing

The process of identifying and determining the nature of a problem, condition, or disease through evaluation of symptoms and signs.