Answered step by step
Verified Expert Solution
Question
1 Approved Answer
ProForm acquired 80 percent of ClipRite on June 30, 2020, for $1,520,000 In cash. Based on ClipRite's acquisition-date fair value, an unrecorded intangible of $500,000
ProForm acquired 80 percent of ClipRite on June 30, 2020, for $1,520,000 In cash. Based on ClipRite's acquisition-date fair value, an unrecorded intangible of $500,000 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 $380,000 at the acquisition date. The 2021 financial statements are as follows: ClipRite $(1,828,000) 505, eee 205, eee $ (319, eee) ProForm $(1,010,000) 648, eee 318,eee (48,880) $ (108,000) $(3,680,000) (188, 289) 319,000 $(2,798,890) $ $ 618,280 588,880 1,520, eee 2, e88,888 (200,eee) $ 4,430, eee 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 $(1,060, eee) (310,000 60,000 $(1,318,000) $ 518,000 919, eee $ (832, eee) (889, 880) (2,798, 008) $(4,430,000) 1,650, eee (200,000) $ 2,870,eee $ (768, eee) (800,000) (1,310,000) $(2,870,000) (Note: Parentheses Indicate a credit balance.) ClipRite sold ProForm Inventory costing $90,000 during the last six months of 2020 for $300,000. At year-end, 30 percent remained. ClipRite sold ProForm Inventory costing $305,000 during 2021 for $460,000. 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 Consolidated Balance Sales Cost of goods sold Operating expenses Dividend income Net income attributable to noncontrolling interest Inventory Noncontrolling interest in subsidiary. 12/31/21
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started