Question
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
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:
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
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 $ (840,000) 555,000 140,000 (54,000) $ (199,000) $(1,300,000) (199,000) 140,000 $(1,359,000) $ 440,000 330,000 780,000 1,400,000 (500,000) $ 2,450,000 $ (591,000) (500,000) (1,359,000) $(2,450,000) ClipRite $ (680,000) 420,000 120,000 0 $ (140,000) $ (890,000) (140,000) 90,000 $ (940,000) 340,000 740,000 800,000 (250,000) $ 1,630,000 $ (190,000) (500,000) (940,000) $(1,630,000)Step by Step Solution
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