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HELP. PLEASE if you can please show work. thank you! ProForm acquired 70 percent of ClipRite on June 30, 2020, for $910,000 in cash. Based
HELP. PLEASE if you can please show work. thank you!
ProForm acquired 70 percent of ClipRite on June 30, 2020, for $910,000 in cash. Based on ClipRite's acquisition-date fair value, an unrecorded intangible of $400,000 was recognized and is being amortized at the rate of $10,000 per year. No goodwill was recognized in the acquisition. The noncontrolling interest fair value was assessed at $390,000 at the acquisition date. The 2021 financial statements are as follows: Sales Cost of goods sold Operating expenses Dividend income Net income Retained earnings, 1/1/21 Net income Dividends declared Retained earnings, 12/31/21 Cash and receivables Inventory Investment in cliprite Fixed asset Accumulated depreciation Totals Liabilities Common stock Retained earnings, 12/31/21 Totals ProForm $ (800,000) 535,000 100,000 (35,000) $ (200,000) $(1,300,000) (200,000) 100,000 $(1,400,000) $ 400,000 290,000 910,000 1,000,000 (300,000) $ 2,300,000 $ (600,000) (300,000) (1,400,000) $(2,300,000) ClipRite $ (600,000) 400,000 100,000 0 $ (100,000) $ (850,000) (100,000) 50,000 $ (900,000) $ 300,000 700,000 0 600,000 (200,000) $ 1,400,000 $ 400,000) (100,000) (900,000) $(1,400,000) (Note: Parentheses indicate a credit balance.) (Note: Parentheses indicate a credit balance.) ProForm sold ClipRite inventory costing $72,000 during the last six months of 2020 for $120,000. At year-end 30 percent remained. ProForm sold ClipRite inventory costing $200,000 during 2021 for $250,000. At year-end, 10 percent is left. Determine the consolidated balances for the following accounts: (Input all amounts as positive values.) Sales Cost of Goods Sold Operating Expenses Dividend Income Net Income Attributable to Noncontrolling Interest Inventory Noncontrolling Interest in Subsidiary, 12/31/21 Consolidated Balance Sales Cost of goods sold Operating expenses Dividend income Net income attributable to noncontrolling interest Inventory Noncontrolling interest in subsidiary, 12/31/21 Step by Step Solution
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