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. At yearend, 1 percent is left. What are the consolidated balances? Proform acquired 70 percent of ClipRite on June 30, 2020, for $910,00 in cash. Based on ClipRites acquistion-date fair value, an unrecorded intangible of $400,000 was recognized and is being amortized at the rate of $10,000 per year. No goodwill was recognized in the acuisition. The noncontrolling interest fair value was assessed at $390,000 at the acquisition date. The 2021 financial statements are as follows: Proform ClipRite Sales -800,000 -600,000 Costs of goods sold 535,000 400,000 Operating expenses 100,000 100,000 Dividend Income -35,000 Net Income -200,000 -100,000 Retained earning, 1/1/21 -1,300,000 -850,000 Net Income -200,000 -100,000 Dividend declared 100,000 50,000 Retained earings, 12/31/21 -1,400,000 -900,000 Cash and receivables 400,000 300,000 Inventory 290,000 700,000 Investment in ClipRite 910,000 0 Fixed Assets 1,000,000 600,000 Accumulated depreciation -300,000 -200,000 Totals 2,300,000 1,400,000 Liablities -600,000 -400,000 commn Stock -300,000 -100,000 Retaied earinings, 12/31/21 -1,400,000 -900,000 -2,300,000 -1,400,000
Question:
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. At yearend, 1 percent is left.
What are the consolidated balances?
Proform acquired 70 percent of ClipRite on June 30, 2020, for $910,00 in cash. Based on ClipRites acquistion-date fair value, an unrecorded intangible of $400,000 was recognized and is being amortized at the rate of $10,000 per year. No
Proform | ClipRite | ||
Sales | -800,000 | -600,000 | |
Costs of goods sold | 535,000 | 400,000 | |
Operating expenses | 100,000 | 100,000 | |
Dividend Income | -35,000 | ||
Net Income | -200,000 | -100,000 | |
Retained earning, 1/1/21 | -1,300,000 | -850,000 | |
Net Income | -200,000 | -100,000 | |
Dividend declared | 100,000 | 50,000 | |
Retained earings, 12/31/21 | -1,400,000 | -900,000 | |
Cash and receivables | 400,000 | 300,000 | |
Inventory | 290,000 | 700,000 | |
Investment in ClipRite | 910,000 | 0 | |
Fixed Assets | 1,000,000 | 600,000 | |
-300,000 | -200,000 | ||
Totals | 2,300,000 | 1,400,000 | |
Liablities | -600,000 | -400,000 | |
commn Stock | -300,000 | -100,000 | |
Retaied earinings, 12/31/21 | -1,400,000 | -900,000 | |
-2,300,000 | -1,400,000 |
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