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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
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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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 Answer is complete but not entirely correct. Sales Cost of goods sold Operating expenses Dividend income Net income attributable to noncontrolling interest Inventory Noncontrolling interest in subsidiary, 12/31/21 Consolidated Balance $ $ $ $ $ $ $ 1,410,000 655,100 413,000 10 96,760 1,238,500 948,600
Transcribed Image Text: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 Answer is complete but not entirely correct. Sales Cost of goods sold Operating expenses Dividend income Net income attributable to noncontrolling interest Inventory Noncontrolling interest in subsidiary, 12/31/21 Consolidated Balance $ $ $ $ $ $ $ 1,410,000 655,100 413,000 10 96,760 1,238,500 948,600
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: Sales Cost of goods sold Operating expenses Dividend income Net income Retained earnings, 1/1/21 Net income Dividends declared Retained earnings, 12/31/21 Cash and receivables Inventory Investment in ClipRite Fixed assets Accumulated depreciation Totals Liabilities Common stock Retained earnings, 12/31/21 Totals ProForm (930,000) 600,000 230,000 (30,000) $ (130,000) $ (230,000) Sales Cost of Goods Sold Operating Expenses $(1,700,000) (130,000) 230,000 $(1,600,000) ClipRite (860,000) 465,000 165,000 0 $ (980,000) (230,000) 50,000 $(1,160,000) $ 530,000 $ 430,000 830,000 0 420,000 660,000 1,200,000 (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.)
Transcribed Image Text: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: Sales Cost of goods sold Operating expenses Dividend income Net income Retained earnings, 1/1/21 Net income Dividends declared Retained earnings, 12/31/21 Cash and receivables Inventory Investment in ClipRite Fixed assets Accumulated depreciation Totals Liabilities Common stock Retained earnings, 12/31/21 Totals ProForm (930,000) 600,000 230,000 (30,000) $ (130,000) $ (230,000) Sales Cost of Goods Sold Operating Expenses $(1,700,000) (130,000) 230,000 $(1,600,000) ClipRite (860,000) 465,000 165,000 0 $ (980,000) (230,000) 50,000 $(1,160,000) $ 530,000 $ 430,000 830,000 0 420,000 660,000 1,200,000 (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.)
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