2 ProForm acquired 70 percent of ClipRite on June 30, 2017, for $1,470,000 in cash. Based on ClipRite's acquisition-date fair value, an unrecorded intangible of $600,000 was recognized and is being amortized at the rate of $19,000 per year. No goodwill was recognized in the acquisition. The noncontrolling interest fair value was assessed at $630,000 at the acquisition date. The 2018 financial statements are as follows: 10 points ProForm ClipRite Sales Cost of goods sold Operating expenses Dividend income $(1,030,000 (1,060,000) 515,000 215,000 650,000 330,000 (56,000) eBook Net income $ 106,000 (330,000) Retained earnings, 1/1/18 Net income Dividends declared $(3,800,000 (1,080,000) Print (106,000) (330,000) 330,000 80,000 $(3,576,000 (1,330,000) $ 530,000 930,000 Retained earnings, 12/31/18 Cash and receivables Inventory Investment in ClipRite Fixed assets Accumulated depreciation $ 630,000 520,000 1,470,000 2,200,000 1,750,000 (400,000)_ _(700,000) $ 4,420,000 2,510,000 Totals Liabilities Common stock Retained earnings, 12/31/18 (300,000) 3,576,000) $ (4,420,000) $ (544,000) (880,000) (300,000) 00 1,330,000) $ (2,510,000) Totals ClipRite sold ProForm inventory costing $92,000 during the last six months of 2017 for $320,000. At year-end, 30 percent remained. ClipRite sells ProForm inventory costing $315,000 during 2018 for $480,000. At year-end, 10 percent is left. With these facts determine the consolidated balances for the following: Balance S 1,610,000 S 633,100 S 564,000 Sales Cost of goods sold Operating expenses Dividend income Net income attributable to noncontrolling interest Inventory Noncontrolling interest in subsidiary, 12/31/18 S 1,433,500 2 ProForm acquired 70 percent of ClipRite on June 30, 2017, for $1,470,000 in cash. Based on ClipRite's acquisition-date fair value, an unrecorded intangible of $600,000 was recognized and is being amortized at the rate of $19,000 per year. No goodwill was recognized in the acquisition. The noncontrolling interest fair value was assessed at $630,000 at the acquisition date. The 2018 financial statements are as follows: 10 points ProForm ClipRite Sales Cost of goods sold Operating expenses Dividend income $(1,030,000 (1,060,000) 515,000 215,000 650,000 330,000 (56,000) eBook Net income $ 106,000 (330,000) Retained earnings, 1/1/18 Net income Dividends declared $(3,800,000 (1,080,000) Print (106,000) (330,000) 330,000 80,000 $(3,576,000 (1,330,000) $ 530,000 930,000 Retained earnings, 12/31/18 Cash and receivables Inventory Investment in ClipRite Fixed assets Accumulated depreciation $ 630,000 520,000 1,470,000 2,200,000 1,750,000 (400,000)_ _(700,000) $ 4,420,000 2,510,000 Totals Liabilities Common stock Retained earnings, 12/31/18 (300,000) 3,576,000) $ (4,420,000) $ (544,000) (880,000) (300,000) 00 1,330,000) $ (2,510,000) Totals ClipRite sold ProForm inventory costing $92,000 during the last six months of 2017 for $320,000. At year-end, 30 percent remained. ClipRite sells ProForm inventory costing $315,000 during 2018 for $480,000. At year-end, 10 percent is left. With these facts determine the consolidated balances for the following: Balance S 1,610,000 S 633,100 S 564,000 Sales Cost of goods sold Operating expenses Dividend income Net income attributable to noncontrolling interest Inventory Noncontrolling interest in subsidiary, 12/31/18 S 1,433,500