Sales Cost of Goods Sold Operating Expenses Dividend Income Net Income Attributable to Noncontrolling Interest Inventory Noncontrolling Interest in Subsidiary, 12/31/21 Answer is complete but not entirely correct. Consolidated Balance Sales 1,530,000 Cost of goods sold $ 641,900 Operating expenses 500,000 Dividend income 0 Net income attributable to $ 110,000 noncontrolling interest Inventory $ 1,355,500 Noncontrolling interest in subsidiary, $ 529,000 12/31/21 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: Sales Cost of goods sold Operating expenses Dividend income Net income Retained earnings, 1/1/21 Dividends declared Net income ProForm (990,000) S 630,000 ClipRite (980,000) 495,000 195,000 0 290,000 (24,000) $ (94,000) $ (290,000) $(2,400,000) $(1,040,000) (94,000) 290,000 (290,000) 40,000 Retained earnings, $(2,204,000) $(1,290,000) 12/31/21 Cash and receivables $ 590,000 Inventory Investment in ClipRite Fixed assets Accumulated depreciation Totals Liabilities Common stock Retained earnings, 12/31/21 Totals 480,000 490,000 890,000 1,020,000 0 1,800,000 1,550,000 (500,000) (500,000) $ 3,390,000 $ 2,430,000 $ (586,000) $ (540,000) (600,000) (2,204,000) (600,000) (1,290,000) $(3,390,000) $(2,430,000) (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.) Sales Cost of Goods Sold Operating Expenses Dividend Income Net Income Attributable to Noncontrolling Interest Inventory Noncontrolling Interest in Subsidiary, 12/31/21

Sales Cost of Goods Sold Operating Expenses Dividend Income Net Income Attributable to Noncontrolling Interest Inventory Noncontrolling Interest in Subsidiary, 12/31/21 Answer is complete but not entirely correct. Consolidated Balance Sales 1,530,000 Cost of goods sold $ 641,900 Operating expenses 500,000 Dividend income 0 Net income attributable to $ 110,000 noncontrolling interest Inventory $ 1,355,500 Noncontrolling interest in subsidiary, $ 529,000 12/31/21 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: Sales Cost of goods sold Operating expenses Dividend income Net income Retained earnings, 1/1/21 Dividends declared Net income ProForm (990,000) S 630,000 ClipRite (980,000) 495,000 195,000 0 290,000 (24,000) $ (94,000) $ (290,000) $(2,400,000) $(1,040,000) (94,000) 290,000 (290,000) 40,000 Retained earnings, $(2,204,000) $(1,290,000) 12/31/21 Cash and receivables $ 590,000 Inventory Investment in ClipRite Fixed assets Accumulated depreciation Totals Liabilities Common stock Retained earnings, 12/31/21 Totals 480,000 490,000 890,000 1,020,000 0 1,800,000 1,550,000 (500,000) (500,000) $ 3,390,000 $ 2,430,000 $ (586,000) $ (540,000) (600,000) (2,204,000) (600,000) (1,290,000) $(3,390,000) $(2,430,000) (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.) Sales Cost of Goods Sold Operating Expenses Dividend Income Net Income Attributable to Noncontrolling Interest Inventory Noncontrolling Interest in Subsidiary, 12/31/21

Auditing: A Risk Based-Approach (MindTap Course List)

11th Edition

ISBN:9781337619455

Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Chapter12: Auditing Long-lived Assets And Merger And Acquisition Activity

Section: Chapter Questions

Problem 37RQSC

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