Question
The following are several figures reported for Allister and Barone as of December 31, 2021: Allister Barone Inventory $ 580,000 $ 380,000 Sales 1,160,000 960,000
The following are several figures reported for Allister and Barone as of December 31, 2021:
Allister | Barone | |||
Inventory | $ | 580,000 | $ | 380,000 |
Sales | 1,160,000 | 960,000 | ||
Investment income | not given | |||
Cost of goods sold | 580,000 | 480,000 | ||
Operating expenses | 270,000 | 340,000 | ||
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 $72,000 that was unrecorded on its accounting records and had a six-year remaining life. Any remaining excess fair value over Barone's book value was attributed to goodwill. During 2021, Barone sells inventory costing $138,000 to Allister for $196,000. Of this amount, 20 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:
Amounts Inventory Sales Cost of goods sold Operating expenses Net income attributable to noncontrolling interestStep by Step Solution
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