Question

ProForm acquired 60 percent of ClipRite on June 30, 2017, for $840,000 in cash. Based on ClipRite's acquisition date fair value, an unrecorded Intangible of $700,000 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 $560,000 at the acquisition date. The 2018 financial statements are as follows: $ ProForm $ (960,600) 615,000 260,000 (48,eee) $ (133,880) $ 2,000,000) (133,000) 260, eee $(1,873,000) clipRite (920,000) 480,000 180,000 e (260,000) $ $ (1,010,000) (260.000) 80, eee $ (1,198,eee) Sales Cost of goods sold Operating expenses Dividend income Net income Retained earnings, 1/1/18 Net income Dividends declared Retained earnings, 12/31/18 Cash and receivables Inventory Investment in clipRite Fixed assets Accumulated depreciation Totals Liabilities Common stock Retained earnings, 12/31/18 Totals $ 460,000 860,000 560,000 450,000 848,888 1,300,000 (200,000) $ 2,950,00 $ (777,000) (380,000) (1,873,000) $(2,950,60e) 1,480,000 (350,000) $ 2,370, $ (880,) (309,bee) (1,190,60e) $ (2, 370,000) ProForm sold ClipRite Inventory costing $85,000 during the last six months of 2017 for $250,000. At year-end, 30 percent remained. ProForm sells ClipRite Inventory costing $280,000 during 2018 for $410,000. At year-end, 10 percent is left. Determine the consolidated balances for the following accounts: Consolidated Balance Sales Cost of goods sold Operating expenses Dividend income Net income attributable to noncontrolling interest Inventory Noncontrolling interest in subsidiary. 12/31/18

Answer 1

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