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 $ 530,000 $ 330,000 Sales 1,060,000 860,000 Investment

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

Allister Barone
Inventory $ 530,000 $ 330,000
Sales 1,060,000 860,000
Investment income not given
Cost of goods sold 530,000 430,000
Operating expenses 245,000 315,000

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 $62,000 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 $133,000 to Allister for $186,000. 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

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

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

Recommended Textbook for

Forensic And Investigative Accounting

Authors: D. Larry Crumbley, Lester E. Heitger, G. Stevenson Smith

7th Edition

0808040731, 9780808040736

More Books

Students also viewed these Accounting questions

Question

=+3. Who can provide information for evaluation?

Answered: 1 week ago