Question
Following are several figures reported for Allister and Barone as of December 31, 2015: Allister Barone Inventory $ 540,000 $ 340,000 Sales 1,080,000 880,000 Investment
Following are several figures reported for Allister and Barone as of December 31, 2015: |
Allister | Barone | |||
Inventory | $ | 540,000 | $ | 340,000 |
Sales | 1,080,000 | 880,000 | ||
Investment income | not given | |||
Cost of goods sold | 540,000 | 440,000 | ||
Operating expenses | 250,000 | 320,000 | ||
|
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 $64,000 that was unrecorded on its accounting records and had a five-year remaining life. Any remaining excess fair value over Barones book value was attributed to goodwill. During 2015, Barone sells inventory costing $134,000 to Allister for $188,000. Of this amount, 15 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 COGS 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