Question
Following are several figures reported for Allister and Barone as of December 31, 2018: Allister Inventory $ 470,000 $ 270,000 Sales 940,000 740,000 Investment income
Following are several figures reported for Allister and Barone as of December 31, 2018:
Allister | ||||
Inventory | $ | 470,000 | $ | 270,000 |
Sales | 940,000 | 740,000 | ||
Investment income | not given | |||
Cost of goods sold | 470,000 | 370,000 | ||
Operating expenses | 215,000 | 285,000 | ||
Allister acquired 80 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 $72,000 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 $127,000 to Allister for $174,000. 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 interestStep by Step Solution
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