Question
Following are several figures reported for Allister and Barone as of December 31, 2018: Allister Barone Inventory $ 520,000 $ 320,000 Sales 1,040,000 840,000 Investment
Following are several figures reported for Allister and Barone as of December 31, 2018: Allister Barone Inventory $ 520,000 $ 320,000 Sales 1,040,000 840,000 Investment income not given Cost of goods sold 520,000 420,000 Operating expenses 240,000 310,000 Allister acquired 80 percent of Barone in January 2017. In allocating the newly acquired subsidiary's fair value at the acquisition date, Allister noted that Barone had developed a customer list worth $60,000 that was unrecorded on its accounting records and had a 6-year remaining life. Any remaining excess fair value over Barone's book value was attributed to goodwill. During 2018, Barone sells inventory costing $132,000 to Allister for $184,000. Of this amount, 20 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 2018: Amounts Inventory Sales Cost of goods sold Operating expenses Net income attributable to noncontrolling interest
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started