Compute the balances in Problem 29 again, assuming that all intra-entity transfers were made from ClipRite to

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Compute the balances in Problem 29 again, assuming that all intra-entity transfers were made from ClipRite to ProForm.

Data from Problem 29

ProForm acquired 70 percent of ClipRite on June 30, 2020, for $910,000 in cash. Based on Clip-Rite’s acquisition-date fair value, an unrecorded intangible of $400,000 was recognized and is being amortized at the rate of $10,000 per year. No goodwill was recognized in the acquisition. The noncontrolling interest fair value was assessed at $390,000 at the acquisition date. The 2021 financial statements are as follows:

ProForm ClipRite $ (800,000) $ (600,000) 400,000 100,000 Sales .. Cost of goods sold Operating expenses Dividend income 535,000 100,000 (35,000) $ (200,000) -0- Net income $ (100,000) $ (850,000) (100,000) 50,000 Retained earnings, 1/1/21 $(1,300,000) (200,000) 100,000 Net income Dividends declared Retained earnings, 12/31/21 $(1.400,000) $ (900,000) Cash and

ProForm sold ClipRite inventory costing $72,000 during the last six months of 2020 for $120,000. At year-end, 30 percent remained. ProForm sold ClipRite inventory costing $200,000 during 2021 for $250,000. At year-end, 10 percent is left. With these facts, determine the consolidated balances for the following:

Sales

Cost of Goods Sold

Operating Expenses

Dividend Income

Net Income Attributable to Noncontrolling Interest

Inventory

Noncontrolling Interest in Subsidiary, 12/31/21

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Advanced Accounting

ISBN: 9781260247824

14th Edition

Authors: Joe Ben Hoyle, Thomas Schaefer, Timothy Doupnik

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