On January 1, 2011, Pride, Inc. acquired 80% of the outstanding voting common stock of Strong Corp. for $364,000. There is no active market for…

On January 1, 2011, 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, 2011, before preparing the consolidated worksheet, the financial statements appeared as follows:During 2011, Pride bought inventory for $112,000 and sold it to Strong for $140,000. Only half of this purchase had been paid for by Strong by the end of the year. 60% of these goods were still in the company’s possession on December 31.(see the attatchment) 1.value:5 points What is the total of consolidated revenues? $560,000. $644,000. $588,000. $840,000. $700,000. ReferencesMultiple Choice Difficulty: Medium Learning Objective: 05-02 Prepare the consolidation entry to eliminate the sales and purchases balances that are created by the intraentity transfer of inventory. 2.value:5 points What is the total of consolidated operating expenses? $47,600. $42,000. $49,000. $35,000. $53,200. ReferencesMultiple Choice Difficulty: Medium Learning Objective: 05-01 Understand that intra-entity asset transfers often create accounting effects within the financial records of affiliated companies that must be eliminated or adjusted in preparing consolidated financial statements. 3.value:5 points What is the total of consolidated cost of goods sold? $184,800. $196,000. $212,800. $203,000. $168,000. ReferencesMultiple Choice Difficulty: Medium Learning Objective: 05-02 Prepare the consolidation entry to eliminate the sales and purchases balances that are created by the intraentity transfer of inventory. 4.value:5 points What is the consolidated total of noncontrolling interest appearing in the balance sheet? $100,800. $97,440. $117,040. $120,400. $93,800. ReferencesMultiple Choice Difficulty: Medium Learning Objective: 05-05 Understand the difference between upstream and downstream intra-entity transfers and how each affects the computation of noncontrolling interest balances. 5.value:5 points What is the consolidated total for equipment (net) at December 31, 2011? $1,066,800. $1,058,400. $1,064,000. $952,000. $1,069,600. ReferencesMultiple Choice Difficulty: Medium Learning Objective: 05-01 Understand that intra-entity asset transfers often create accounting effects within the financial records of affiliated companies that must be eliminated or adjusted in preparing consolidated financial statements. 6.value:5 points What is the consolidated total for inventory at December 31, 2011? $280,000. $336,000. $349,300. $347,200. $364,000.