ProForm acquired 60 percent of ClipRite on June 30, 2020, for $660,000 in cash. Based on ClipRite's acquisition-date fair value, anunrecorded intangible of $720,000 was recognized and is being amortized at the rate of $18,000 per year. No goodwill wasrecognized in the acquisition. The noncontrolling interest fair value was assessed at $440,000 at the acquisition date. The 2021financial statements are as follows:SalesCost of goods soldOperating expensesDividend incomeNet incomeRetained earnings, 1/1/21Net incomeDividends declaredRetained earnings,12/31/21Cash and receivablesInventoryInvestment in ClipRiteFixed assetsAccumulated depreciationTotalsLiabilitiesCommon stockRetained earnings, 12/31/21TotalsProForm(930,000)600,000230,000(30,000)$ (130,000) $ (230,000)SalesCost of Goods SoldOperating Expenses$(1,700,000)(130,000)230,000$(1,600,000)ClipRite(860,000)465,000165,0000$ (980,000)(230,000)50,000$(1,160,000)$ 530,000 $ 430,000830,0000420,000660,0001,200,000(200,000)1,250,000(400,000)$ 2,610,000$ 2,110,000$ (310,000) $ (250,000)(700,000)(1,600,000)(700,000)(1,160,000)$(2,610,000)$(2,110,000)(Note: Parentheses indicate a credit balance.)ProForm sold ClipRite inventory costing $82,000 during the last six months of 2020 for $220,000. At year-end, 30 percent remained.ProForm sold ClipRite Inventory costing $265,000 during 2021 for $380,000. At year-end, 10 percent is left.Determine the consolidated balances for the following accounts: (Input all amounts as positive values.) 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.SalesCost of goods soldOperating expensesDividend incomeNet income attributable to noncontrollinginterestInventoryNoncontrolling interest in subsidiary, 12/31/21ConsolidatedBalance$$$$$$$1,410,000655,100413,0001096,7601,238,500948,600

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 $660,000 in cash. Based on ClipRite's acquisition-date fair value, an unrecorded intangible of $720,000 was recognized and is being amortized at the rate of $18,000 per year. No goodwill was recognized in the acquisition. The noncontrolling interest fair value was assessed at $440,000 at the acquisition date. The 2021 financial statements are as follows:

ProForm acquired 60 percent of ClipRite on June 30, 2020, for $660,000 in cash. Based on ClipRite's acquisition-date fair value, an unrecorded intangible of $720,000 was recognized and is being amortized at the rate of $18,000 per year. No goodwill was recognized in the acquisition. The noncontrolling interest fair value was assessed at $440,000 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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On January 1 2021 ABC acquired 90% of DEF. Analysis of data relative to this purchase indicates that goodwill of P70,000 was acquired in this purchase. The goodwill is unimpaired. On July 1, 2021, DEF sold a patent to ABC. The sales price was P140,000. DEF's books value was P70,000. DEF estimates that the patent has a life of 5 years and no salvage value. It will use straight line depreciation. For 2023, ABC's net income is P560,000 from its own operations. DEF had net income of P140,000. The 2023 net income attributable to equity holders of ABC is: 623,000 616,000 637,000 629,300
Compute for the Consolidated Asset for 2018.
s
On January 1, 2020, French Company acquired 60 percent of K-Tech Company for $306,000 when K-Tech’s book value was $406,000. The fair value of the newly comprised 40 percent noncontrolling interest was assessed at $204,000. At the acquisition date, K-Tech's trademark (10-year remaining life) was undervalued in its financial records by $80,000. Also, patented technology (5-year remaining life) was undervalued by $24,000. In 2020, K-Tech reports $28,000 net income and declares no dividends. At the end of 2021, the two companies report the following figures (stockholders’ equity accounts have been omitted): French CompanyCarrying Amounts K-Tech CompanyCarrying Amounts K-Tech CompanyFair Values Current assets $ 624,000 $ 304,000 $ 324,000 Trademarks 264,000 204,000 284,000 Patented technology 414,000 154,000 178,000 Liabilities (394,000 ) (124,000 ) (124,000 ) Revenues (904,000 ) (404,000 )…
IIn 2018, Martin Corp. acquired Glynco and recorded goodwill of $100 million. Martin considers Glynco a separate reporting unit. By the end of 2021, the net assets (including goodwill) of Glynco are $320 million and its estimated fair value is $260 million. The amount of the impairment loss that Martin would record for goodwill at the end of 2021 is:
On January 1, 2021 ABC acquired 90% of DEF. Analysis of data relative to this purchase indicates that goodwill of $70,000 was acquired in this purchase. The goodwill is unimpaired. On July 1, 2021, DEF sold a patent to ABC. The sales price was $140,000. DEF's book value was $70,000. DEF estimates that the patent has a life of 5 years and no salvage value. It will use straight line depreciation. For 2023, ABC's net income is $560,000 from its own operations. DEF had net income of $140,000. The 2023 net income attributable to equity holders of ABC is: O 629,300 O 637,000 O 616,000 O 623,000
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