Proform acquired 70 percent of ClipRite on June 30, 2020, for $910,000 in cash. Based on ClipRites acquisition-date fair value, an unrecorded intangible of $400,000 was recognized and is being amortized at the rate of $10,000 per year. No goodwill was recognized in the acquisition. The noncontrolling interest fair value was assessed at $390,000 at the acquisition date. The 2021 financial statements are as follows:
What are the consolidated balances for?
- Cost of Goods Sold
- Net income attributable to non-controlling Interest
ClipRite sold ProForm inventory costing $72,000 during the last six months of 2020 for $120,000. At year-end, 30 percent remained ClipRite sold ProForm inventory costing $200,000 during 2021 for $250,000. At yearend, 10% percent is left.
Proform acquired 70 percent of ClipRite on June 30, 2020, for $910,000 in cash. Based on ClipRites acquisition-date fair value, an unrecorded intangible of $400,000 was recognized and is being amortized at the rate of $10,000 per year. No
|
|
|
Proform |
ClipRite |
|
Sales |
|
-800,000 |
-600,000 |
|
Costs of goods sold |
|
535,000 |
400,000 |
|
Operating expenses |
|
100,000 |
100,000 |
|
Dividend Income |
|
-35,000 |
|
|
|
Net Income |
-200,000 |
-100,000 |
|
Retained earning, 1/1/21 |
-1,300,000 |
-850,000 |
|
|
Net Income |
|
-200,000 |
-100,000 |
|
Dividend declared |
|
100,000 |
50,000 |
|
|
|
-1,400,000 |
-900,000 |
|
Cash and receivables |
|
400,000 |
300,000 |
|
Inventory |
|
290,000 |
700,000 |
|
Investment in ClipRite |
910,000 |
0 |
|
|
Fixed Assets |
|
1,000,000 |
600,000 |
|
|
-300,000 |
-200,000 |
|
|
|
Totals |
2,300,000 |
1,400,000 |
|
Liabilities |
|
-600,000 |
-400,000 |
|
common Stock |
|
-300,000 |
-100,000 |
|
Rotated earnings, 12/31/21 |
-1,400,000 |
-900,000 |
|
|
|
|
-2,300,000 |
-1,400,000 |
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