ProForm acquired 60 percent of ClipRite on June 30, 2020, for $780,000 in cash. Based on...
Fantastic news! We've Found the answer you've been seeking!
Question:
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/05/665996af160c3_310665996ae88f18.jpg)
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/05/665996afa6832_311665996af44e0b.jpg)
Transcribed Image Text:
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 $560,000 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: 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 assets Accumulated depreciation Totals Liabilities Common stock Retained earnings, 12/31/21 Totals ProForm ClipRite $ (840,000) $ (680,000) 555,000 140,000 (54,000) 420,000 120,000 0 $ (199,000) $ (140,000) $ (1,300,000) (199,000) 140,000 $ (1,359,000) 440,000 330,000 780,000 1,400,000 (500,000) $ (890,000) (140,000) 90,000 $ (940,000) 340,000 740,000 0 800,000 (250,000) $ 1,630,000 $ 2,450,000 (591,000) (500,000) (1,359,000) $(2,450,000) $ (190,000) (500,000) (940,000) $ (1,630,000) (Note: Parentheses indicate a credit balance.) 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 $560,000 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: 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 assets Accumulated depreciation Totals Liabilities Common stock Retained earnings, 12/31/21 Totals ProForm ClipRite $ (840,000) $ (680,000) 555,000 140,000 (54,000) 420,000 120,000 0 $ (199,000) $ (140,000) $ (1,300,000) (199,000) 140,000 $ (1,359,000) 440,000 330,000 780,000 1,400,000 (500,000) $ (890,000) (140,000) 90,000 $ (940,000) 340,000 740,000 0 800,000 (250,000) $ 1,630,000 $ 2,450,000 (591,000) (500,000) (1,359,000) $(2,450,000) $ (190,000) (500,000) (940,000) $ (1,630,000) (Note: Parentheses indicate a credit balance.)
Expert Answer:
Posted Date:
Students also viewed these accounting questions
-
What are the essentials of performance management?
-
A firm uses a single plant with costs C = 160 + 16Q + .1Q2 and faces the price equation P = 96 - .4Q. a. Find the firms profit-maximizing price and quantity. What is its profit? b. The firms...
-
The December 31, 2019 balance sheet of Randy Inc. included the following in Shareholders' Equity: Common shares, 80,000 shares issued and outstanding Preferred shares, cumulative, $5, 5,000 shares...
-
2. The NMOS and PMOS transistors in the below circuit are matched with kn (Wn/Ln)=kp (Wp/Lp)=1 mA/V and Vin=-Vtp=1V. Assume =o for both devices, find the drain current iDN and iDF and the voltage vo...
-
Un compresor de flujo axial de 9 etapas y con una razn de presin de 9/1 tiene las razones de presin iguales por etapa, para una de las etapas la temperatura de entrada es de 50 C, el rendimiento...
-
Continuous Flow versus Departmental Flow Manufacturing Bienestar Inc., has the following departmental structure for producing a well-known multivitamin Wait time -10 min -------- 24 minutes...
-
Johnson Corporation is preparing a flexible budget and desires to separate its electricity expense which is semi-variable and fluctuates with total machine hours, into its fixed and variable...
-
Alpine Luggage has a capacity to produce 370,000 suitcases per year. The company is currently producing and selling 290,000 units per year at a selling price of $402 per case. The cost of producing...
-
Beta Products is planning to add another warehouse. Ten products from the entire line are to be stored in the new warehouse. These products will be the A and B items. All C items are to be served out...
-
There are five fundamental principles of ethics for professional accountants: Integrity, objectivity, professional competence and due care, confidentiality and professional behavior. IDENTIFY one of...
-
Core Petroleum started its oil and gas exploration and production business in 2015. During the years 2015 and 2016, the company provided the following information relating to leases located both in...
-
Data as of 12/31/15 for Dry Hole Oil Companys U.S. properties are as follows: (This problem is similar to problem 14 in chapter 6.) Dry Holes activities during 2016 were as follows: a. Use T-accounts...
-
The Clarence Oil Company provides the following information for the year ended December 31, 2017: REQUIRED: a. Prepare a ceiling test and an entry, if necessary, for the write-off of capitalized...
![Mobile App Logo](https://dsd5zvtm8ll6.cloudfront.net/includes/images/mobile/finalLogo.png)
Study smarter with the SolutionInn App