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ProForm acquired 60 percent of ClipRite on June 30, 2017, for $960,000 in cash. Based on ClipRite's acquisition-date fair value, an unrecorded intangible of $700,000
ProForm acquired 60 percent of ClipRite on June 30, 2017, for $960,000 in cash. Based on ClipRite's acquisition-date fair value, an unrecorded intangible of $700,000 was recognized and is being amortized at the rate of $17,000 per year. No goodwill was recognized in the acquisition. The noncontrolling interest fair value was assessed at $640,000 at the acquisition date. The 2018 financial statements are as follows: $ clipRite (740,000) 435,000 135,000 Sales Cost of goods sold Operating expenses Dividend income Net income Retained earnings, 1/1/18 Net income Dividends declared Retained earnings, 12/31/18 Cash and receivables Inventory Investment in clipRite Fixed assets Accumulated depreciation Totals Liabilities Common stock Retained earnings, 12/31/18 Totals ProForm $ (870,000) 570,000 170,000 (30,000) (160,000) $(1,600,000) (160,000) 170,000 $(1,590,000) $ 470.000 360,000 960,000 1,700,000 (300,000). $ 3,190,000 $ (800,000) (800,000) (1,590,000). $ (3,190,000) $ (170,000) $ (920,000) (170,000) 50,000 $(1,040,000) $ 370,000 770,000 950,000 (100,000) $ 1,990,000 $ (150,000) (800,000) (1,040,000) $(1,990,000) ProForm sold ClipRite inventory costing $76,000 during the last six months of 2017 for $160,000. At year-end, 30 percent remained. ProForm sells ClipRite inventory costing $235,000 during 2018 for $320,000. At year-end, 10 percent is left. Determine the consolidated balances for the following accounts: Consolidated Balance Sales Cost of goods sold Operating expenses Dividend income Net income attributable to noncontrolling interest Inventory Noncontrolling interest in subsidiary, 12/31/18
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