he following are several figures reported for Allister and Barone as of December 31, 2021:     Allister Barone Inventory $ 540,000 $ 340,000 Sales   1,080,000   880,000 Investment income not given     Cost of goods sold   540,000   440,000 Operating expenses   250,000   320,000

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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The following are several figures reported for Allister and Barone as of December 31, 2021:

 

  Allister Barone
Inventory $ 540,000 $ 340,000
Sales   1,080,000   880,000
Investment income not given    
Cost of goods sold   540,000   440,000
Operating expenses   250,000   320,000
 

 

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 $64,000 that was unrecorded on its accounting records and had a five-year remaining life. Any remaining excess fair value over Barone's book value was attributed to goodwill. In 2021, Barone sells inventory costing $134,000 to Allister for $188,000. Of this amount, 15 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:

Inventory:________

Sales:_______
Cost of goods sold:_________
Operating Expenses:________
Net income attributable to noncontrolling interest:________
Expert Solution
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Financial Accounting Standards Board defines the consolidated financial statements reporting as reporting of an entity structured with a parent company and subsidiaries. consolidated financial statements reflect the financial position of the business itself along with its subsidiary companies, associate companies, and joint ventures.

A consolidated financial statement is inclusive of all the subsidiary companies where the owner has a controlling interest and the subsidiaries which are wholly-owned. It includes all the same elements as the individual financial statement but in consolidated form. These are often used by investors, government agencies, and applying for loans.

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