Question

ProForm acquired 60 percent of ClipRite on June 30, 2017, for $1,380,000 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 $21,000 per year. No goodwill was recognized in the acquisition. The noncontrolling interest fair value was assessed at $920,000 at the acquisition date. The 2018 financial statements are as follows ProForm ClipRite Sales Cost of goods sold Operating expenses Dividend income (1,050,000 (1,100,000) 525,000 225,000 660,000 350,000 60,000 Net income Retained earnings, 1/1/18 Net income Dividends declared (100,000 350,000) $ (3,400,000) (1,100,000) 100,000 (100,000) (350,000) 350,000 $ (3,150,000) $ (1,350,000) Retained earnings, 12/31/18 Cash and receivables Inventory Investment in ClipRite Fixed assets Accumulated depreciation 550. $650,000 540,000 1,380,000 2,400,000 (600,000 $550,000 950,000 1,850,000 800,000 $ 2,550,000 (720,000)(700,000) $ 4,370,000 Totals Liabilities Common stock Retained earnings, 12/31/18 (500,000) (3,150,000)(1,350,000) (500,000) Totals $ (4,370,000) (2,550,000) ProForm sold ClipRite inventory costing $94,000 during the last six months of 2017 for $340,000. At year-end, 30 percent remained. ProForm sells ClipRite inventory costing $325,000 during 2018 for $500,000. At year-end, 10 percent is left. Determine the consolidated balances for the following accounts: 80 Answer is complete but not entirely correct. Consolidated Balance $ 1,598,000 $ 864,300 Sales Cost of goods sold Operating expenses Dividend income Net income attributable to noncontrolling $485,000 interest Inventory Noncontrolling interest in subsidiary, 12/31/18 133,000 $ 1,440,000 $733,000

Answer 1

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Eliminake inha enly tronsfr ts -s00000 Adjusled grop pft de feed in 201i-1380o 오 i.kast of 900 sold is 628 00 openoing Exrnsy is 35000+ 225000 + 21000-594000 nsej μ 卡596000 Divi dend Income IS O * let ncome almbules to NCT cipik reporled ne income is 360000 et income s385300

These intra entity qyoss Pwsit 73800 Ts 0000