ProForm acquired 60 percent of ClipRite on June 30, 2020, for $1,140,000 in cash. Based on ClipRite's acquisition-date fair value, anunrecorded intangible of $400,000 was recognized and is being amortized at the rate of $15,000 per year. No goodwill wasrecognized in the acquisition. The noncontrolling interest fair value was assessed at $760,000 at the acquisition date. The 2021financial statements are as follows:SalesCost of goods soldOperating expensesDividend incomeNet incomeRetained earnings, 1/1/21Net incomeDividends declaredRetained earnings, 12/31/21Cash and receivablesInventoryInvestment in ClipRiteFixed assetsAccumulated depreciationTotalsLiabilitiesCommon stockRetained earnings, 12/31/21TotalsSalesCost of Goods SoldProFormClipRite$ (900,000) $ (800,000)450,000585,000200,000(48,000)150,0000$ (163,000) $ (200,000)$(950,000)(200,000)80,000$(1,070,000)$ 400,000800,0000$(2,300,000)(163,000)200,000$(2,263,000)$ 500,000390,0001,140,0002,000,000(700,000)$ 3,330,000$ (667,000)(400,000)(2,263,000)$ (3,330,000)(Note: Parentheses indicate a credit balance.)ClipRite sold ProForm inventory costing $79,000 during the last six months of 2020 for $190,000. At year-end, 30 percent remained.ClipRite sold ProForm inventory costing $250,000 during 2021 for $350,000. At year-end, 10 percent is left.Determine the consolidated balances for the following: (Input all amounts as positive values.)SalesCost of goods soldOperating expensesDividend incomeNet income attributable to noncontrolling interestInventoryNoncontrolling interest in subsidiary, 12/31/21Operating ExpensesDividend IncomeNet Income Attributable to Noncontrolling InterestInventoryNoncontrolling Interest in Subsidiary, 12/31/211,100,000(250,000)$ 2,050,000$ (580,000)(400,000)(1,070,000)$(2,050,000)> Answer is complete but not entirely correct.ConsolidatedBalance$$$$$$$1,350,000661,700365,000083,3201,180,000✔527,250 X

A consolidated income statement amalgamates financial data from a parent company and its…

Answered: Noncontrolling interest in subsidiary,…

Business

Accounting

Noncontrolling interest in subsidiary, 12/31/21 $ 527,250 X

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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