ProForm acquired 70 percent of ClipRite on June 30, 2020, for $770,000 in cash. Based on ClipRite's acquisition-date fair value, an unrecorded intangible of $480,000 was recognized and is being amortized at the rate of $12,000 per year. No goodwill was recognized in the acquisition. The noncontrolling interest fair value was assessed at $330,000 at the acquisition date. The 2021 financial statements are as follows: ProForm ClipRite Sales $ (820,000 ) $ (640,000 ) Cost of goods sold 545,000 410,000 Operating expenses 120,000 110,000 Dividend income (49,000 ) 0 Net income $ (204,000 ) $ (120,000 ) Retained earnings, 1/1/21 $ (1,100,000 ) $ (870,000 ) Net income (204,000 ) (120,000 ) Dividends declared 120,000 70,000 Retained earnings, 12/31/21 $ (1,184,000 ) $ (920,000 ) Cash and receivables $ 420,000 $ 320,000 Inventory 310,000 720,000 Investment in ClipRite 770,000 0 Fixed assets 1,200,000 700,000 Accumulated depreciation (400,000 ) (300,000 ) Totals $ 2,300,000 $ 1,440,000 Liabilities $ (816,000 ) $ (220,000 ) Common stock (300,000 ) (300,000 ) Retained earnings, 12/31/21 (1,184,000 ) (920,000 ) Totals $ (2,300,000 ) $ (1,440,000 ) (Note: Parentheses indicate a credit balance.) ProForm sold ClipRite inventory costing $71,000 during the last six months of 2020 for $110,000. At year-end, 30 percent remained. ProForm sold ClipRite inventory costing $210,000 during 2021 for $270,000. At year-end, 10 percent is left. Determine the consolidated balances for the following accounts: (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
ProForm acquired 70 percent of ClipRite on June 30, 2020, for $770,000 in cash. Based on ClipRite's acquisition-date fair value, an unrecorded intangible of $480,000 was recognized and is being amortized at the rate of $12,000 per year. No
ProForm | ClipRite | ||||||
Sales | $ | (820,000 | ) | $ | (640,000 | ) | |
Cost of goods sold | 545,000 | 410,000 | |||||
Operating expenses | 120,000 | 110,000 | |||||
Dividend income | (49,000 | ) | 0 | ||||
Net income | $ | (204,000 | ) | $ | (120,000 | ) | |
$ | (1,100,000 | ) | $ | (870,000 | ) | ||
Net income | (204,000 | ) | (120,000 | ) | |||
Dividends declared | 120,000 | 70,000 | |||||
Retained earnings, 12/31/21 | $ | (1,184,000 | ) | $ | (920,000 | ) | |
Cash and receivables | $ | 420,000 | $ | 320,000 | |||
Inventory | 310,000 | 720,000 | |||||
Investment in ClipRite | 770,000 | 0 | |||||
Fixed assets | 1,200,000 | 700,000 | |||||
(400,000 | ) | (300,000 | ) | ||||
Totals | $ | 2,300,000 | $ | 1,440,000 | |||
Liabilities | $ | (816,000 | ) | $ | (220,000 | ) | |
Common stock | (300,000 | ) | (300,000 | ) | |||
Retained earnings, 12/31/21 | (1,184,000 | ) | (920,000 | ) | |||
Totals | $ | (2,300,000 | ) | $ | (1,440,000 | ) | |
(Note: Parentheses indicate a credit balance.)
ProForm sold ClipRite inventory costing $71,000 during the last six months of 2020 for $110,000. At year-end, 30 percent remained. ProForm sold ClipRite inventory costing $210,000 during 2021 for $270,000. At year-end, 10 percent is left.
Determine the consolidated balances for the following accounts: (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
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