TEKI Submit 7 Check my work THE no ProForm acquired 70 percent of ClipRite on June 30, 2020, for $1,050,000 in cash. Based on ClipRite's acquisition date fair value, on unrecorded intangible of $750,000 was recognized and is being amortized at the rate of $13,000 per year. No goodwill was recognized in the acquisition. The noncontrolling interest fair value was assessed at $450,000 at the acquisition date. The 2021 financial statements are as follows: Sales Profor ClipRite Cost of goods sold $ (970,000) $(940,000) 620,000 Operating expenses 485.000 Dividend income 270.ee 185.000 (63,000 Net income $(143,000) $ 270,000) Retained earnings, 1/1/21 $(2,200,000) 501,020,000) Net income (143,000) (270,000) Dividends declared 270.000 90.000 Retained earnings, 12/31/21 5(2.073,000 $(1,200,000) Cash and receivables $ 570,000 $ 470.000 Inventory 460,000 870,000 Investment in Clipite 1,050,000 . Fixed assets 1.400,00 1,450,000 Accumulated depreciation (100,00 (400,000) Totals 5 3,150,000 $ 2,390,000 Liabilities $(707,000) $(790,000) (400,000) Common stock (420,00 (2.073.000) Retained earnings, 12/31/21 (1,200,000 5(3,180,000) $(2,390,000) Totals