Compute the balances in Problem 29 again, assuming that all intra-entity transfers were made from ClipRite to
Question:
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 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
Step by Step Answer:
Advanced Accounting
ISBN: 9781260247824
14th Edition
Authors: Joe Ben Hoyle, Thomas Schaefer, Timothy Doupnik