Question
Following are several figures reported for Allister and Barone as of December 31, 2018: Allister Barone Inventory $ 570,000 $ 370,000 Sales 1,140,000 940,000 Investment
Following are several figures reported for Allister and Barone as of December 31, 2018:
Allister | Barone | |||
Inventory | $ | 570,000 | $ | 370,000 |
Sales | 1,140,000 | 940,000 | ||
Investment income | not given | |||
Cost of goods sold | 570,000 | 470,000 | ||
Operating expenses | 265,000 | 335,000 | ||
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 $70,000 that was unrecorded on its accounting records and had a 5-year remaining life. Any remaining excess fair value over Barone's book value was attributed to goodwill. During 2018, Barone sells inventory costing $137,000 to Allister for $194,000. Of this amount, 15 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 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