Question
The following are several figures reported for Allister and Barone as of December 31, 2021: Allister Barone Inventory $ 560,000 $ 360,000 Sales 1,120,000 920,000
The following are several figures reported for Allister and Barone as of December 31, 2021:
Allister | Barone | |||
Inventory | $ | 560,000 | $ | 360,000 |
Sales | 1,120,000 | 920,000 | ||
Investment income | not given | |||
Cost of goods sold | 560,000 | 460,000 | ||
Operating expenses | 260,000 | 330,000 | ||
Allister acquired 90 percent of Barone in January 2020. In allocating the newly acquired subsidiary's fair value at the acquisition date, Allister noted that Barone had developed a customer list worth $68,000 that was unrecorded on its accounting records and had a four-year remaining life. Any remaining excess fair value over Barone's book value was attributed to goodwill. During 2021, Barone sells inventory costing $136,000 to Allister for $192,000. Of this amount, 10 percent remains unsold in Allister's warehouse at year-end.
Determine balances for the following items that would appear on Allister's consolidated financial statements for 2021:
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