am. 152. Answer is complete but not entirely correct.ConsolidatedBalanceSales$1,470,000Cost of goods soldOperating expensesSS648,500452,000Dividend income$0Net income attributable to noncontrolling$113,800interestInventory69$1,297,000Noncontrolling interest in subsidiary, 12/31/1869$144,800 x ProForm acquired 60 percent of ClipRite on June 30, 2017, for $840,000 in cash. Based on ClipRite's acquisition-date fairvalue, an unrecorded intangible of $700,000 was recognized and is being amortized at the rate of $12,000 per year. Nogoodwill was recognized in the acquisition. The noncontrolling interest fair value was assessed at $560,000 at theacquisition date. The 2018 financial statements are as follows:ProFormClipRiteSales$ (960,000$ (920,000)Cost of goods sold615,000480,000Operating expenses260,000180,000Dividend income(48,000)0Net income$ (133,000)$ (260,000 )Retained earnings, 1/1/18$ (2,000,000 )$ (1,010,000 )Net incomeDividends declared(133,000 )260,000(260,000 )80,000Retained earnings, 12/31/18$ (1,873,000 )$ (1,190,000Cash and receivables$ 560,000$ 460,000Inventory450,000860,000Investment in ClipRite840,0000Fixed assets1,300,0001,400,000(200,000 )Accumulated depreciationTotals$ 2,950,000Liabilities(350,000 )$ 2,370,000$ (777,000 ) $ (880,000 )Common stock(300,000 )(300,000 )Retained earnings, 12/31/18(1,873,000 )(1,190,000 )Totals$ (2,950,000)$ (2,370,000 )ClipRite sold ProForm inventory costing $85,000 during the last six months of 2017 for $250,000. At year-end, 30 percentremained. ClipRite sells ProForm inventory costing $280,000 during 2018 for $410,000. At year-end, 10 percent is left.With these facts, determine the consolidated balances for the following:

Consolidation -Financial elements such as a branch's income, costs, cash flows, liabilities,…

ProForm acquired 60 percent of ClipRite on June 30, 2017, for $840,000 in cash. Based on ClipRite's acquisition-date fair value, an unrecorded intangible of $700,000 was recognized and is being amortized at the rate of $12,000 per year. No goodwill was recognized in the acquisition. The noncontrolling interest fair value was assessed at $560,000 at the acquisition date. The 2018 financial statements are as follows: ProForm ClipRite

ProForm acquired 60 percent of ClipRite on June 30, 2017, for $840,000 in cash. Based on ClipRite's acquisition-date fair value, an unrecorded intangible of $700,000 was recognized and is being amortized at the rate of $12,000 per year. No goodwill was recognized in the acquisition. The noncontrolling interest fair value was assessed at $560,000 at the acquisition date. The 2018 financial statements are as follows: ProForm ClipRite

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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