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, 2015: Allister Barone Inventory $ 500,000 $ 300,000 Sales 1,000,000 800,000 Investment

Following are several figures reported for Allister and Barone as of December 31, 2015:

Allister

Barone

Inventory

$

500,000

$

300,000

Sales

1,000,000

800,000

Investment income

not given

Cost of goods sold

500,000

400,000

Operating expenses

230,000

300,000

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 $78,000 that was unrecorded on its accounting records and had a four-year remaining life. Any remaining excess fair value over Barones book value was attributed to goodwill. During 2015, Barone sells inventory costing $130,000 to Allister for $180,000. Of this amount, 10 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 795,000

Sales ?

Cost of Goods Sold 725,000

Operating Expenses 549,500

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_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

Accounting Principles Understanding Important Terms And Principles Of Accounting

Authors: Lyndsay Sudduth

1st Edition

B0B5KV57NJ, 979-8840104033

More Books

Students also viewed these Accounting questions