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, 2018: Allister Barone Inventory $ 650,000 $ 450,000 Sales 1,300,000 1,100,000 Investment

Following are several figures reported for Allister and Barone as of December 31, 2018:

Allister Barone
Inventory $ 650,000 $ 450,000
Sales 1,300,000 1,100,000
Investment income not given
Cost of goods sold 650,000 550,000
Operating expenses 305,000 375,000

Allister acquired 90 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 $86,000 that was unrecorded on its accounting records and had a 4-year remaining life. Any remaining excess fair value over Barone's book value was attributed to goodwill. During 2018, Barone sells inventory costing $145,000 to Allister for $210,000. Of this amount, 10 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 for Sales, COGS, Inventory and Net Income for Non Controlling Interest

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

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

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

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

Get Started

Recommended Textbook for

The Business Innovation Audit

Authors: William Tate

1st Edition

0955970733, 978-0955970733

More Books

Students also viewed these Accounting questions

Question

a. the market for an hour of babysitting services in Middling today

Answered: 1 week ago

Question

recognise typical interviewer errors and explain how to avoid them

Answered: 1 week ago

Question

identify and evaluate a range of recruitment and selection methods

Answered: 1 week ago

Question

understand the role of competencies and a competency framework

Answered: 1 week ago