The following are several figures reported for Allister and Barone as of December 31, 2021:AllisterBarone$ 500,000 $ 300,0001,000,000not given500,000230,000InventorySales800,000Investment incomeCost of goods soldOperating expenses400,000300,000Allister 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 $78,000 that was unrecorded on its accounting records and had afour-year remaining life. Any remaining excess fair value over Barone's book value was attributed to goodwill. During 2021, Baronesells inventory costing $130,000 to Allister for $180,00o. Of this amount, 10 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:AmountsInventorySalesCost of goods soldOperating expensesNet income attributable to noncontrolling interest

Allister and Barone: Particulars Amount Inventory 795,000 Sales 1,620,000 Cost of Goods…

Allister Barone aventory les vestment income st of goods sold erating expenses $ 500,000 $ 300,000 1,000,000 800,000 not given 500,000 230,000 300,000 400,000 ter acquired 90 percent of Barone in January 2020. In allocating the newly acquired subsidiary's f ter noted that Barone had developed a customer list worth $78,000 that was unrecorded on its ac -year remaining life. Any remaining excess fair value over Barone's book value was attributed to g s inventory costing $130,000 to Allister for $180,000. Of this amount, 10 percent remains unsold in ermine balances for the following items that would appear on Allister's consolidated financial state Amounts entory es at of goods sold erating expenses

Allister Barone aventory les vestment income st of goods sold erating expenses $ 500,000 $ 300,000 1,000,000 800,000 not given 500,000 230,000 300,000 400,000 ter acquired 90 percent of Barone in January 2020. In allocating the newly acquired subsidiary's f ter noted that Barone had developed a customer list worth $78,000 that was unrecorded on its ac -year remaining life. Any remaining excess fair value over Barone's book value was attributed to g s inventory costing $130,000 to Allister for $180,000. Of this amount, 10 percent remains unsold in ermine balances for the following items that would appear on Allister's consolidated financial state Amounts entory es at of goods sold erating expenses

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Concept explainers

Capital Gain

Any capital asset when sold can give the seller a higher or lower price from its purchase price leading to a capital gain or capital loss. The time period of holding an asset is decided based on if it is a long term or short-term capital gain. On that basis, the rate of taxation is decided if it is 20%, 15% or according to the tax brackets. The rate of taxation differs in the case of equity or debt, whether long or short term. The capital gain can be adjusted from capital loss to arrive at a net capital gain. The amount of gains and the exemption has to be reported in the tax return filed in the financial year in which the asset was transferred. The tax return can be filed quarterly, monthly, semi-annually or annually.

Question

100%

The following are several figures reported for Allister and Barone as of December 31, 2021:
Allister
Barone
$ 500,000 $ 300,000
1,000,000
not given
500,000
230,000
Inventory
Sales
800,000
Investment income
Cost of goods sold
Operating expenses
400,000
300,000
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 $78,000 that was unrecorded on its accounting records and had a
four-year remaining life. Any remaining excess fair value over Barone's book value was attributed to goodwill. During 2021, Barone
sells inventory costing $130,000 to Allister for $180,00o. Of this amount, 10 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 interest

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