ClipRite (600,000) 400,000 100,000 0 $ (100,000) (850,000) (100,000) 50,000 (900,000) 300,000 700,000 0 600,000 (200,000) $ 1,400,000 (400,000) (100,000) (900,000) $(1,400,000) ProForm Sales (800,000) Cost of goods sold 535,000 Operating expenses 100,000 Dividend income (35,000) Net income $ (200,000) $(1,300,000) $ Retained earnings, 1/1/21 Net income (200,000) Dividends declared 100,000 Retained earnings, 12/31/21 $(1,400,000) Cash and receivables $ Inventory 400,000 290,000 910,000 Investment in ClipRite Fixed assets 1,000,000 Accumulated depreciation Totals Liabilities Common stock Retained earnings, 12/31/21 Totals (300,000) $ 2,300,000 $ (600,000) (300,000) (1,400,000) $(2,300,000) $
ProForm acquired 70 percent of ClipRite on June 30, 2020, for $910,000 in cash. Based on ClipRite’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. No
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ClipRite sold ProForm inventory costing $72,000 during the last six months of 2020 for $120,000. At year-end, 30 percent remained. ClipRite sold ProForm inventory costing $200,000 during 2021 for $250,000. At year-end, 10 percent is left.
Determine the consolidated balances for the following:
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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