Homework Help is Here – Start Your Trial Now!
Business
Accounting
Net income attributable to noncontrolling interest Inventory Noncontrolling interest in subsidiary, 12/31/24 $ LA $ $ GA 27,000 X 985,000 355,500

Net income attributable to noncontrolling interest Inventory Noncontrolling interest in subsidiary, 12/31/24 $ LA $ $ GA 27,000 X 985,000 355,500

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question

Vala 

ProForm acquired 70 percent of ClipRite on June 30, 2023, 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 2024 financial statements are as follows: Items Sales Cost of goods sold Operating expenses Dividend income Net income Retained earnings, 1/1/24 Net income Dividends declared Retained earnings, 12/31/24 Cash and receivables Inventory Investment in ClipRite Fixed assets Accumulated depreciation Totals Liabilities Common stock Retained earnings, 12/31/24 Totals Note: Parentheses indicate a credit balance. ProForm $ (800,000) 535,000 100,000 (35,000) $ (200,000) $ (1,300,000) (200,000) 100,000 $ (1,400,000) $ 400,000 290,000 910,000 1,000,000 (300,000) $ 2,300,000 Sales Cost of goods sold Operating expenses Dividend income Net income attributable to noncontrolling interest Inventory Noncontrolling interest in subsidiary, 12/31/24 > Answer is complete but not entirely correct. Consolidated Balance ClipRite $ (600,000) 400,000 100,000 Required: With these facts, determine the consolidated balances for the following: Note: Input all amounts as positive values. 1,150,000 675,600 210,000 $ (100,000) $ (850,000) (100,000) 50,000 $ (900,000) $ 300,000 700,000 $ (600,000) (300,000) (1,400,000) $ (400,000) (100,000) (900,000) $ (2,300,000) $ (1,400,000) ClipRite sold ProForm inventory costing $72,000 during the last six months of 2023 for $120,000. At year-end, 30 percent remained. ClipRite sold ProForm inventory costing $200,000 during 2024 for $250,000. At year-end, 10 percent is left. $ $ $ $ $ $ $ 355,500 0 600,000 (200,000) $ 1,400,000 0 0✓ 27,000 X 985,000
Transcribed Image Text:ProForm acquired 70 percent of ClipRite on June 30, 2023, 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 2024 financial statements are as follows: Items Sales Cost of goods sold Operating expenses Dividend income Net income Retained earnings, 1/1/24 Net income Dividends declared Retained earnings, 12/31/24 Cash and receivables Inventory Investment in ClipRite Fixed assets Accumulated depreciation Totals Liabilities Common stock Retained earnings, 12/31/24 Totals Note: Parentheses indicate a credit balance. ProForm $ (800,000) 535,000 100,000 (35,000) $ (200,000) $ (1,300,000) (200,000) 100,000 $ (1,400,000) $ 400,000 290,000 910,000 1,000,000 (300,000) $ 2,300,000 Sales Cost of goods sold Operating expenses Dividend income Net income attributable to noncontrolling interest Inventory Noncontrolling interest in subsidiary, 12/31/24 > Answer is complete but not entirely correct. Consolidated Balance ClipRite $ (600,000) 400,000 100,000 Required: With these facts, determine the consolidated balances for the following: Note: Input all amounts as positive values. 1,150,000 675,600 210,000 $ (100,000) $ (850,000) (100,000) 50,000 $ (900,000) $ 300,000 700,000 $ (600,000) (300,000) (1,400,000) $ (400,000) (100,000) (900,000) $ (2,300,000) $ (1,400,000) ClipRite sold ProForm inventory costing $72,000 during the last six months of 2023 for $120,000. At year-end, 30 percent remained. ClipRite sold ProForm inventory costing $200,000 during 2024 for $250,000. At year-end, 10 percent is left. $ $ $ $ $ $ $ 355,500 0 600,000 (200,000) $ 1,400,000 0 0✓ 27,000 X 985,000
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 4 steps with 3 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Consolidations
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS