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ProForm acquired 60 percent of ClipRite on June 30, 2017, for $1,020,000 in cash. Based on ClipRite's acquisition-date fair value, an unrecorded intangible of $400,000

ProForm acquired 60 percent of ClipRite on June 30, 2017, for $1,020,000 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 $15,000 per year. No goodwill was recognized in the acquisition. The noncontrolling interest fair value was assessed at $680,000 at the acquisition date. The 2018 financial statements are as follows:

ProForm ClipRite
Sales $ (990,000) $ (980,000)
Cost of goods sold 630,000 495,000
Operating expenses 290,000 195,000
Dividend income (24,000) 0
Net income $ (94,000) $ (290,000)
Retained earnings, 1/1/18 $ (2,400,000) $ (1,040,000)
Net income (94,000) (290,000)
Dividends declared 290,000 40,000
Retained earnings, 12/31/18 $ (2,204,000) $ (1,290,000)
Cash and receivables $ 590,000 $ 490,000
Inventory 480,000 890,000
Investment in ClipRite 1,020,000 0
Fixed assets 1,800,000 1,550,000
Accumulated depreciation (500,000) (500,000)
Totals $ 3,390,000 $ 2,430,000
Liabilities $ (586,000) $ (540,000)
Common stock (600,000) (600,000)
Retained earnings, 12/31/18 (2,204,000) (1,290,000)
Totals $ (3,390,000) $ (2,430,000)

ProForm sold ClipRite inventory costing $88,000 during the last six months of 2017 for $280,000. At year-end, 30 percent remained. ProForm sells ClipRite inventory costing $295,000 during 2018 for $440,000. At year-end, 10 percent is left.

Determine the consolidated balances for the following accounts:

image text in transcribed

Consolidated Balance $ 1,530,000 $ 641,900 $ 500,000 Sales Cost of goods sold Operating expenses Dividend income Net income attributable to noncontrolling interest Inventory Noncontrolling interest in subsidiary, 12/31/18 0

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