Question: Following are several figures reported for Allister and Barone as of December 31, 2015: Allister acquired 90 percent of Barone in January 2014. In allocating

Following are several figures reported for Allister and Barone as of December 31, 2015:


Following are several figures reported for Allister and Barone as


Allister acquired 90 percent of Barone in January 2014. In allocating the newly acquired subsidiary’s fair value at the acquisition date, Allister noted that Barone had developed a customer list worth $78,000 that was unrecorded on its accounting records and had a 4-year remaining life. Any remaining excess fair value over Barone’s book value was attributed to goodwill. During 2015, Barone sells inventory costing $130,000 to Allister for $180,000. Of this amount, 10 percent remains unsold in Allister’s warehouse at year-end.
Determine balances for the following items that would appear on Allister’s consolidated financial statements for 2015:
Inventory
Sales
Cost of Goods Sold
Operating Expenses
Net Income Attributable to NoncontrollingInterest

Allister Barone $ 500,000 $300,000 800,000 nventory Sales - Investment income Cost of goods sold. Operating expenses 1,000,000 not given 500,000 230,000 400,000 300,000

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Customer list amortization 78000 4 years 19500 per year Intraentity gross profit 180000 130000 50000 ... View full answer

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