Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Following are several figures reported for Allister and Barone as of December 31, 2015: Allister Barone Inventory $ 640,000 $ 440,000 Sales 1,280,000 1,080,000 Investment

Following are several figures reported for Allister and Barone as of December 31, 2015:
Allister Barone
Inventory $ 640,000 $ 440,000
Sales 1,280,000 1,080,000
Investment income not given
Cost of goods sold 640,000 540,000
Operating expenses 300,000 370,000

Allister acquired 90 percent of Barone in January 2014. In allocating the newly acquired subsidiarys fair value at the acquisition date, Allister noted that Barone had developed a customer list worth $84,000 that was unrecorded on its accounting records and had a six-year remaining life. Any remaining excess fair value over Barones book value was attributed to goodwill. During 2015, Barone sells inventory costing $144,000 to Allister for $208,000. Of this amount, 20 percent remains unsold in Allisters warehouse at year-end.

Determine balances for the following items that would appear on Allisters consolidated financial statements for 2015:

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

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions

Question

Please fill in the blank and show the details, thanks!

Answered: 1 week ago