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ProForm acquired 70 percent of ClipRite on June 30, 2023, for $1,050,000 in cash. Based on ClipRite's acquisition-date fair value, an unrecorded intangible of $750,000 was recognized and is being amortized at the rate of $13,000 per year. No goodwill was recognized in the acquisition. The noncontrolling Interest fair value was assessed at $450,000 at the acquisition date. The 2024 financial statements are as follows: Items Sales Cost of goods sold Operating expenses Dividend Income Net income Retained earnings, 1/1/24 Net Income Dividends declared Retained earnings, 12/31/24 Cash and receivables Inventory Investment in Cliphite Fixed assets Accumulated depreciation Totals Liabilities Common stock Retained earnings, 12/31/24 Totals Proform $ (978,000) 620,000 270,000 (63,000) $ (143,000) $ (2,200,000) (143,000) 270,000 $ (2,873,088) $ 578,888 460,000 1,050,000 1,480,000 (388,000) $ 3,180,000 $ (787,000) (488,088) (2,873,088) $ (3,188,000) Clipkite $ (948,080) 485,000 185,000 $ (278,080) $ (1,828,080) (278,088) 90,000 $ (1,200,000) $470,000 870,000 1,450,000 (400,000) $ 2,390,000 $ (798,880) (400,000) (1,280,000) $ (2,390,000) Note: Parentheses Indicate a credit balance. ClipRite sold ProForm Inventory costing $86,000 during the last six months of 2023 for $260,000. At year-end, 30 percent remained. ClipRite sold ProForm Inventory costing $285,000 during 2024 for $420,000. At year-end, 10 percent is left. Required: With these facts, determine the consolidated balances for the following: Note: Input all amounts as positive values. Answer is not complete. Consolidated Balance Sales S 1,490,000 Cost of goods sold 15 646,300 Operating expenses S 468,000 Dividend Income 5 Net income attributable to noncontrolling interest S 88,710 Inventory S 1,316,500 Noncontrolling interest in subsidiary, 12/31/24

ProForm acquired 70 percent of ClipRite on June 30, 2023, for $1,050,000 in cash. Based on ClipRite's acquisition-date fair value, an unrecorded intangible of $750,000 was recognized and is being amortized at the rate of $13,000 per year. No goodwill was recognized in the acquisition. The noncontrolling Interest fair value was assessed at $450,000 at the acquisition date. The 2024 financial statements are as follows: Items Sales Cost of goods sold Operating expenses Dividend Income Net income Retained earnings, 1/1/24 Net Income Dividends declared Retained earnings, 12/31/24 Cash and receivables Inventory Investment in Cliphite Fixed assets Accumulated depreciation Totals Liabilities Common stock Retained earnings, 12/31/24 Totals Proform $ (978,000) 620,000 270,000 (63,000) $ (143,000) $ (2,200,000) (143,000) 270,000 $ (2,873,088) $ 578,888 460,000 1,050,000 1,480,000 (388,000) $ 3,180,000 $ (787,000) (488,088) (2,873,088) $ (3,188,000) Clipkite $ (948,080) 485,000 185,000 $ (278,080) $ (1,828,080) (278,088) 90,000 $ (1,200,000) $470,000 870,000 1,450,000 (400,000) $ 2,390,000 $ (798,880) (400,000) (1,280,000) $ (2,390,000) Note: Parentheses Indicate a credit balance. ClipRite sold ProForm Inventory costing $86,000 during the last six months of 2023 for $260,000. At year-end, 30 percent remained. ClipRite sold ProForm Inventory costing $285,000 during 2024 for $420,000. At year-end, 10 percent is left. Required: With these facts, determine the consolidated balances for the following: Note: Input all amounts as positive values. Answer is not complete. Consolidated Balance Sales S 1,490,000 Cost of goods sold 15 646,300 Operating expenses S 468,000 Dividend Income 5 Net income attributable to noncontrolling interest S 88,710 Inventory S 1,316,500 Noncontrolling interest in subsidiary, 12/31/24

Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter12: Intangibles
Section: Chapter Questions
Problem 19E
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ProForm acquired 70 percent of ClipRite on June 30, 2023, for $1,050,000 in cash. Based on ClipRite's acquisition-date fair value, an unrecorded intangible of $750,000 was recognized and is being amortized at the rate of $13,000 per year. No goodwill was recognized in the acquisition. The noncontrolling Interest fair value was assessed at $450,000 at the acquisition date. The 2024 financial statements are as follows: Items Sales Cost of goods sold Operating expenses Dividend Income Net income Retained earnings, 1/1/24 Net Income Dividends declared Retained earnings, 12/31/24 Cash and receivables Inventory Investment in Cliphite Fixed assets Accumulated depreciation Totals Liabilities Common stock Retained earnings, 12/31/24 Totals Proform $ (978,000) 620,000 270,000 (63,000) $ (143,000) $ (2,200,000) (143,000) 270,000 $ (2,873,088) $ 578,888 460,000 1,050,000 1,480,000 (388,000) $ 3,180,000 $ (787,000) (488,088) (2,873,088) $ (3,188,000) Clipkite $ (948,080) 485,000 185,000 $ (278,080) $ (1,828,080) (278,088) 90,000 $ (1,200,000) $470,000 870,000 1,450,000 (400,000) $ 2,390,000 $ (798,880) (400,000) (1,280,000) $ (2,390,000) Note: Parentheses Indicate a credit balance. ClipRite sold ProForm Inventory costing $86,000 during the last six months of 2023 for $260,000. At year-end, 30 percent remained. ClipRite sold ProForm Inventory costing $285,000 during 2024 for $420,000. At year-end, 10 percent is left. Required: With these facts, determine the consolidated balances for the following: Note: Input all amounts as positive values. Answer is not complete. Consolidated Balance Sales S 1,490,000 Cost of goods sold 15 646,300 Operating expenses S 468,000 Dividend Income 5 Net income attributable to noncontrolling interest S 88,710 Inventory S 1,316,500 Noncontrolling interest in subsidiary, 12/31/24
Transcribed Image Text:ProForm acquired 70 percent of ClipRite on June 30, 2023, for $1,050,000 in cash. Based on ClipRite's acquisition-date fair value, an unrecorded intangible of $750,000 was recognized and is being amortized at the rate of $13,000 per year. No goodwill was recognized in the acquisition. The noncontrolling Interest fair value was assessed at $450,000 at the acquisition date. The 2024 financial statements are as follows: Items Sales Cost of goods sold Operating expenses Dividend Income Net income Retained earnings, 1/1/24 Net Income Dividends declared Retained earnings, 12/31/24 Cash and receivables Inventory Investment in Cliphite Fixed assets Accumulated depreciation Totals Liabilities Common stock Retained earnings, 12/31/24 Totals Proform $ (978,000) 620,000 270,000 (63,000) $ (143,000) $ (2,200,000) (143,000) 270,000 $ (2,873,088) $ 578,888 460,000 1,050,000 1,480,000 (388,000) $ 3,180,000 $ (787,000) (488,088) (2,873,088) $ (3,188,000) Clipkite $ (948,080) 485,000 185,000 $ (278,080) $ (1,828,080) (278,088) 90,000 $ (1,200,000) $470,000 870,000 1,450,000 (400,000) $ 2,390,000 $ (798,880) (400,000) (1,280,000) $ (2,390,000) Note: Parentheses Indicate a credit balance. ClipRite sold ProForm Inventory costing $86,000 during the last six months of 2023 for $260,000. At year-end, 30 percent remained. ClipRite sold ProForm Inventory costing $285,000 during 2024 for $420,000. At year-end, 10 percent is left. Required: With these facts, determine the consolidated balances for the following: Note: Input all amounts as positive values. Answer is not complete. Consolidated Balance Sales S 1,490,000 Cost of goods sold 15 646,300 Operating expenses S 468,000 Dividend Income 5 Net income attributable to noncontrolling interest S 88,710 Inventory S 1,316,500 Noncontrolling interest in subsidiary, 12/31/24
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