ProForm acquired 60 percent of ClipRite on June 30, 2020, for $1,020,000 in cash. Based on ClipRite'sacquisition-date fair value, an unrecorded intangible of $600,000 was recognized and is being amortized at therate of $15,000 per year. No goodwill was recognized in the acquisition. The noncontrolling interest fair value wasassessed at $680,000 at the acquisition date. The 2021 financial statements are as follows:SalesCost of goods soldOperating expensesDividend incomeNet incomeRetained earnings,1/1/21Net incomeInventoryInvestment inClipRiteFixed assetsAccumulateddepreciationTotalsLiabilitiesDividends declaredRetained earnings,12/31/21Cash and receivables $Common stockRetained earnings,12/31/21TotalsProFormSalesCost of Goods Sold(990,000) $630,000290,000(24,000)$ (94,000) $ (290,000)(94,000)290,000$(2,204,000)$(2,400,000) $(1,040,000)(290,000)40,000ClipRite1,020,0001,800,000(980,000)$(1,290,000)590,000 $ 490,000480,000890,000(2,204,000)$(3,390,000)495,000195,0000Operating ExpensesDividend IncomeNet Income Attributable to Noncontrolling InterestInventoryNoncontrolling Interest in Subsidiary, 12/31/210(500,000)$ 3,390,000 $ 2,430,000$ (586,000) $ (540,000)(600,000)(600,000)(1,290,000)$(2,430,000)1,550,000(500,000)(Note: Parentheses indicate a credit balance.)ProForm sold ClipRite inventory costing $88,000 during the last six months of 2020 for $280,000. At year-end,30 percent remained. ProForm sold ClipRite inventory costing $295,000 during 2021 for $440,000. At year-end,10 percent is left.Determine the consolidated balances for the following accounts: (Input all amounts as positive values.) SalesCost of Goods SoldOperating ExpensesDividend IncomeNet Income Attributable to Noncontrolling InterestInventoryNoncontrolling Interest in Subsidiary, 12/31/21Answer is complete but not entirely correct.ConsolidatedBalanceSalesCost of goods soldOperating expensesDividend incomeNet income attributable tononcontrolling interestInventoryNoncontrolling interest in subsidiary,"12/31/21$$$$$$$1,530,000641,900500,000110,0001,355,500529,000 €

It is often referred as 'Minority interest'. It is the percentage of ownership lower than 50% of…

ProForm acquired 60 percent of ClipRite on June 30, 2020, for $1,020,000 in cash. Based on ClipRite's acquisition-date fair value, an unrecorded intangible of $600,000 was recognized and is being amortized at the rate of $15,000 per year. No goodwill was recognized in the acquisition. The noncontrolling interest fair value was assessed at $680,000 at the acquisition date. The 2021 financial statements are as follows:

ProForm acquired 60 percent of ClipRite on June 30, 2020, for $1,020,000 in cash. Based on ClipRite's acquisition-date fair value, an unrecorded intangible of $600,000 was recognized and is being amortized at the rate of $15,000 per year. No goodwill was recognized in the acquisition. The noncontrolling interest fair value was assessed at $680,000 at the acquisition date. The 2021 financial statements are as follows:

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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