goods sold Consolida Balanc 1,150, 675, $ 69
SWFT Essntl Tax Individ/Bus Entities 2020
23rd Edition
ISBN:9780357391266
Author:Nellen
Publisher:Nellen
Chapter8: Property Transactions: Capital Gains And Losses, Section 1231 And Recapture Provisions
Section: Chapter Questions
Problem 38P
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Question
The noncontrolling interest is what I am needing, the answer is not 415,500 and it's not 418,320. Thank you
![Answer is complete but not entirely correct.
Consolidated
Balance
Sales
Cost of goods sold
Operating expenses
Dividend income
Net income attributable to noncontrolling interest
Inventory
Noncontrolling interest in subsidiary, 12/31/21
1,150,000
675,600
210,000 -
0
29,820
985.000
46 415,500 ×
$
$
$
$](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd8519b74-4068-4667-bc1b-93d27a5789f1%2F9a61272c-ae38-47a5-bc80-653f5b138098%2F9plg7jl_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Answer is complete but not entirely correct.
Consolidated
Balance
Sales
Cost of goods sold
Operating expenses
Dividend income
Net income attributable to noncontrolling interest
Inventory
Noncontrolling interest in subsidiary, 12/31/21
1,150,000
675,600
210,000 -
0
29,820
985.000
46 415,500 ×
$
$
$
$
![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 goodwill was
recognized in the acquisition. The noncontrolling interest fair value was assessed at $390,000 at the acquisition date. The 2021
financial statements are as follows:
Sales
Cost of goods sold
Operating expenses
Dividend income
Net income
Retained earnings, 1/1/21
Net income
Dividends declared
Retained earnings, 12/31/21
Cash and receivables
Inventory
Investment in ClipRite
Fixed assets
Accumulated depreciation
Totals
Liabilities
Common stocki
Retained earnings, 12/31/21
Totals
(Note: Parentheses indicate a credit balance.)
ProForm
$ (800,000)
535,000
188,888
Sales
Cost of Goods Sold
$(1,300,000)
(288,000)
1280,000) $ (188,888)
S (850,088)
(100,008)
58,888
(988,888)
388,888
$(1,488,908)
$ 400,000
910,000
1,088,888
(308,000)
$ 2,308,000
1588,888)
(388,888)
(1,488,808)
$(2,388,888)
ClipRite
(600,008)
488,888
188,888
8
Operating Expenses
Dividend Income
Net Income Attributable to Noncontrolling Interest
Inventory
Noncontrolling Interest in Subsidiary. 12/31/21
3
608,888
(288,888)
$ 1.408,888
$ (488,888)
(188,888)
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: (Input all amounts as positive values.)
$(1.400,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd8519b74-4068-4667-bc1b-93d27a5789f1%2F9a61272c-ae38-47a5-bc80-653f5b138098%2F09ebi3i_processed.jpeg&w=3840&q=75)
Transcribed Image Text: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 goodwill was
recognized in the acquisition. The noncontrolling interest fair value was assessed at $390,000 at the acquisition date. The 2021
financial statements are as follows:
Sales
Cost of goods sold
Operating expenses
Dividend income
Net income
Retained earnings, 1/1/21
Net income
Dividends declared
Retained earnings, 12/31/21
Cash and receivables
Inventory
Investment in ClipRite
Fixed assets
Accumulated depreciation
Totals
Liabilities
Common stocki
Retained earnings, 12/31/21
Totals
(Note: Parentheses indicate a credit balance.)
ProForm
$ (800,000)
535,000
188,888
Sales
Cost of Goods Sold
$(1,300,000)
(288,000)
1280,000) $ (188,888)
S (850,088)
(100,008)
58,888
(988,888)
388,888
$(1,488,908)
$ 400,000
910,000
1,088,888
(308,000)
$ 2,308,000
1588,888)
(388,888)
(1,488,808)
$(2,388,888)
ClipRite
(600,008)
488,888
188,888
8
Operating Expenses
Dividend Income
Net Income Attributable to Noncontrolling Interest
Inventory
Noncontrolling Interest in Subsidiary. 12/31/21
3
608,888
(288,888)
$ 1.408,888
$ (488,888)
(188,888)
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: (Input all amounts as positive values.)
$(1.400,000
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