Bennett acquired 70 percent of Zeigler on June 30, 2010, for $910,000 in cash. Based on Zeigler’s acquisition-date fair value, an unrecorded intangible of $400,000 was recognized and is being amortized at the rate of $10,000 per year. The noncontrolling interest fair value was assessed at $390,000 at the acquisition date. The 2011 financial statements are as follows:
| Bennett | Zeigler |
Sales | $ (800,000) | $ (600,000) |
Cost of goods sold | 535,000 | 400,000 |
Operating expenses | 100,000 | 100,000 |
Dividend income | (35,000) | -0- |
Net income | $ (200,000) | $ (100,000) |
Retained earnings, 1/1/11 | $(1,300,000) | $ (850,000) |
Net income | (200,000) | (100,000) |
Dividends paid | 100,000 | 50,000 |
Retained earnings, 12/31/11 | $(1,400,000) | $ (900,000) |
Cash and receivables | $ 400,000 | $ 300,000 |
Inventory | 290,000 | 700,000 |
Investment in Zeigler | 910,000 | -0- |
Fixed assets | 1,000,000 | 600,000 |
Accumulated depreciation | (300,000) | (200,000) |
Totals | $ 2,300,000 | $ 1,400,000 |
Liabilities | $ (600,000) | $ (400,000) |
Common stock | (300,000) | (100,000) |
Retained earnings | (1,400,000) | (900,000) |
Totals | $(2,300,000) | $(1,400,000) |
Bennett sold Zeigler inventory costing $72,000 during the last six months of 2010 for $120,000. At year-end, 30 percent remained. Bennett sells Zeigler inventory costing $200,000 during 2011 for $250,000. At year-end, 20 percent is left. With these facts, determine the consolidated balances for the accounts:
Sales
Cost of Goods Sold
Operating Expenses
Dividend Income
Noncontrolling Interest in Consolidated Income
Inventory
Noncontrolling Interest in Subsidiary, 12/31/11
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