ProForm acquired 60 percent of ClipRite on June 30, 2017, for $600,000 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 $11,000 per year. No goodwill was recognized in the acquisition. The noncontrolling interest fair value was assessed at $400,000 at the acquisition date. T he 2018 financial statements are as follows: ProForm ClipRite Sales Cost of goods sold Operating expenses Dividend incone (810,000) (620,000) 405,000 540,000 110,000 (36,000) 105,000 Net income $ (196,000) (110,000) s(1,000,000) (860,000) Retained earnings, 1/1/18 Set income Dividends declared (110,000) $(1,086,000 (910,000) $ 310,000 (196,000) 110,000 60,000 - Retained earnings, 12/31/18 Cash and receivables Inventory Investment in ClipRite Fixed assets Accumulated depreciation $ 410,000 300,000 600,000 1,100,000 710,000 650,000 500 000) (250,000) Totals Liabi1ities Common stock Retained earnings, 12/31/18 $ 1,910,000 1,420,000 (624,000) (310,000) (200, 000) (200,000) (1.086 000) 1910,000) Totals $ (1,910,000) $(1,420,000) ClipRite sold ProForm inventory costing $70,000 during the last six months of 2017 for $100,000. At year-end, 30 percent remained ClipRite sells ProForm determine the consolidated balances for the following: inventory costing $205,000 during 2018 for $260,000. At year-end, 10 percent is left. With these facts, Prev 1 of 9 lli Next