Please help me with the last one, thank you ProForm acquired 60 percent of ClipRite on June 30, 2020, for $780,000 in cash. Based on
Please help me with the last one, thank you
ProForm acquired 60 percent of ClipRite on June 30, 2020, for $780,000 in cash. Based on ClipRite's acquisition-date fair value, an unrecorded intangible of $550,000 was recognized and is being amortized at the rate of $14,000 per year. No goodwill was recognized in the acquisition. The noncontrolling interest fair value was assessed at $520,000 at the acquisition date. The 2021 financial statements are as follows:
ProForm | ClipRite | ||||||
Sales | $ | (840,000 | ) | $ | (680,000 | ) | |
Cost of goods sold | 555,000 | 420,000 | |||||
Operating expenses | 140,000 | 120,000 | |||||
Dividend income | (54,000 | ) | 0 | ||||
Net income | $ | (199,000 | ) | $ | (140,000 | ) | |
Retained earnings, 1/1/21 | $ | (1,300,000 | ) | $ | (890,000 | ) | |
Net income | (199,000 | ) | (140,000 | ) | |||
Dividends declared | 140,000 | 90,000 | |||||
Retained earnings, 12/31/21 | $ | (1,359,000 | ) | $ | (940,000 | ) | |
Cash and receivables | $ | 440,000 | $ | 340,000 | |||
Inventory | 330,000 | 740,000 | |||||
Investment in ClipRite | 780,000 | 0 | |||||
Fixed assets | 1,400,000 | 800,000 | |||||
Accumulated depreciation | (500,000 | ) | (250,000 | ) | |||
Totals | $ | 2,450,000 | $ | 1,630,000 | |||
Liabilities | $ | (591,000 | ) | $ | (190,000 | ) | |
Common stock | (500,000 | ) | (500,000 | ) | |||
Retained earnings, 12/31/21 | (1,359,000 | ) | (940,000 | ) | |||
Totals | $ | (2,450,000 | ) | $ | (1,630,000 | ) | |
(Note: Parentheses indicate a credit balance.)
ClipRite sold ProForm inventory costing $73,000 during the last six months of 2020 for $130,000. At year-end, 30 percent remained. ClipRite sold ProForm inventory costing $220,000 during 2021 for $290,000. At year-end, 10 percent is left.
Determine the consolidated balances for the following: (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
Answer is complete but not entirely correct. $ 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 $ 1,230,000 674,900 $ 274,000 $ 0 54.440 1,063,000 737,200 01 $ $ $
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