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ing the newly acquired subsidi 52,000 that was unrecorded or book value was attributed to

ing the newly acquired subsidi 52,000 that was unrecorded or book value was attributed to

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The following are several figures reported for Allister and Barone as of December 31, 2021: Allister Barone Inventory Sales $ 420,000 $ 220,000 640,000 Investment income Cost of goods sold Operating expenses 840,000 not given 420,000 190,000 320,000 260, 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 $62,000 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. During 2021, Barone sells inventory costing $122,000 to Allister for $164,000O. 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: Amounts Inventory Sales Cost of goods sold Operating expenses Net income attributable to noncontrolling interest
Transcribed Image Text:The following are several figures reported for Allister and Barone as of December 31, 2021: Allister Barone Inventory Sales $ 420,000 $ 220,000 640,000 Investment income Cost of goods sold Operating expenses 840,000 not given 420,000 190,000 320,000 260, 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 $62,000 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. During 2021, Barone sells inventory costing $122,000 to Allister for $164,000O. 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: Amounts Inventory Sales Cost of goods sold Operating expenses Net income attributable to noncontrolling interest
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