Question
Following are several figures reported for Allister and Barone as of December 31, 2018: Allister Barone Inventory $ 590,000 $ 390,000 Sales 1,180,000 980,000 Investment
Following are several figures reported for Allister and Barone as of December 31,
2018: Allister Barone
Inventory $ 590,000 $ 390,000
Sales 1,180,000 980,000
Investment income not given
Cost of goods sold 590,000 490,000
Operating expenses 275,000 345,000
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 $74,000 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
$139,000 to Allister for $198,000. 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: 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 with AI-Powered 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