Homework Help is Here – Start Your Trial Now!
Business
Accounting
ProForm acquired 70 percent of ClipRite on June 30, 2023, for $1,400,000 in cash. Based on ClipRite's acquisition-date fair value, an unrecorded intangible of $640,000 was recognized and is being amortized at the rate of $16,000 per year. No goodwill was recognized in the acquisition. The noncontrolling interest fair value was assessed at $600,000 at the acquisition date. The 2024 financial statements are as follows Itens 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 ClipRite Fixed assets Accumulated depreciation Totals Liabilities Common stock Retained earnings, 12/31/24 Totals Note: Parentheses Indicate a credit balance ProForm $ (910,000) 590,000 210,000 (63,000) $ (173,000) $ (2,000,000) (173,000) 210,000 $ (1,963,000) $510,000 400,000 1,400,000 1,000,000 (200,000) $3,110,000 $ (647,000) (500,000) (1,963,000) $ (3,110,000) ClipRite $ (820,000) 455,000 155,000 e (210,000) $ (960,000) (210,000) 90,000 $ (1,050,000) $410,000 $10,000 1,150,000 (300,000) $2,070,000 $ (490,000) (500,000) (1,000,000) $ (2,070,000) ProForm sold ChipRite Inventory costing $80,000 during the last six months of 2023 for $142,000. At year-end, 30 percent remained ProForm sold ClipRite Inventory costing $255,000 during 2024 for $360,000. 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. Consolidated Balance Sales Cost of goods sold 1.370.000 S 676,900 Operating expenses $ 381.000 Dividend income $ Net income attributable to noncontrolling interest Inventory $ 58.200 1,199.500 Noncontrolling interest in subsidiary, 12/31/24

ProForm acquired 70 percent of ClipRite on June 30, 2023, for $1,400,000 in cash. Based on ClipRite's acquisition-date fair value, an unrecorded intangible of $640,000 was recognized and is being amortized at the rate of $16,000 per year. No goodwill was recognized in the acquisition. The noncontrolling interest fair value was assessed at $600,000 at the acquisition date. The 2024 financial statements are as follows Itens 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 ClipRite Fixed assets Accumulated depreciation Totals Liabilities Common stock Retained earnings, 12/31/24 Totals Note: Parentheses Indicate a credit balance ProForm $ (910,000) 590,000 210,000 (63,000) $ (173,000) $ (2,000,000) (173,000) 210,000 $ (1,963,000) $510,000 400,000 1,400,000 1,000,000 (200,000) $3,110,000 $ (647,000) (500,000) (1,963,000) $ (3,110,000) ClipRite $ (820,000) 455,000 155,000 e (210,000) $ (960,000) (210,000) 90,000 $ (1,050,000) $410,000 $10,000 1,150,000 (300,000) $2,070,000 $ (490,000) (500,000) (1,000,000) $ (2,070,000) ProForm sold ChipRite Inventory costing $80,000 during the last six months of 2023 for $142,000. At year-end, 30 percent remained ProForm sold ClipRite Inventory costing $255,000 during 2024 for $360,000. 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. Consolidated Balance Sales Cost of goods sold 1.370.000 S 676,900 Operating expenses $ 381.000 Dividend income $ Net income attributable to noncontrolling interest Inventory $ 58.200 1,199.500 Noncontrolling interest in subsidiary, 12/31/24

Auditing: A Risk Based-Approach (MindTap Course List)
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
See similar textbooks
icon
Related questions
Question
ProForm acquired 70 percent of ClipRite on June 30, 2023, for $1,400,000 in cash. Based on ClipRite's acquisition-date fair value, an unrecorded intangible of $640,000 was recognized and is being amortized at the rate of $16,000 per year. No goodwill was recognized in the acquisition. The noncontrolling interest fair value was assessed at $600,000 at the acquisition date. The 2024 financial statements are as follows Itens 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 ClipRite Fixed assets Accumulated depreciation Totals Liabilities Common stock Retained earnings, 12/31/24 Totals Note: Parentheses Indicate a credit balance ProForm $ (910,000) 590,000 210,000 (63,000) $ (173,000) $ (2,000,000) (173,000) 210,000 $ (1,963,000) $510,000 400,000 1,400,000 1,000,000 (200,000) $3,110,000 $ (647,000) (500,000) (1,963,000) $ (3,110,000) ClipRite $ (820,000) 455,000 155,000 e (210,000) $ (960,000) (210,000) 90,000 $ (1,050,000) $410,000 $10,000 1,150,000 (300,000) $2,070,000 $ (490,000) (500,000) (1,000,000) $ (2,070,000) ProForm sold ChipRite Inventory costing $80,000 during the last six months of 2023 for $142,000. At year-end, 30 percent remained ProForm sold ClipRite Inventory costing $255,000 during 2024 for $360,000. 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. Consolidated Balance Sales Cost of goods sold 1.370.000 S 676,900 Operating expenses $ 381.000 Dividend income $ Net income attributable to noncontrolling interest Inventory $ 58.200 1,199.500 Noncontrolling interest in subsidiary, 12/31/24
Transcribed Image Text:ProForm acquired 70 percent of ClipRite on June 30, 2023, for $1,400,000 in cash. Based on ClipRite's acquisition-date fair value, an unrecorded intangible of $640,000 was recognized and is being amortized at the rate of $16,000 per year. No goodwill was recognized in the acquisition. The noncontrolling interest fair value was assessed at $600,000 at the acquisition date. The 2024 financial statements are as follows Itens 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 ClipRite Fixed assets Accumulated depreciation Totals Liabilities Common stock Retained earnings, 12/31/24 Totals Note: Parentheses Indicate a credit balance ProForm $ (910,000) 590,000 210,000 (63,000) $ (173,000) $ (2,000,000) (173,000) 210,000 $ (1,963,000) $510,000 400,000 1,400,000 1,000,000 (200,000) $3,110,000 $ (647,000) (500,000) (1,963,000) $ (3,110,000) ClipRite $ (820,000) 455,000 155,000 e (210,000) $ (960,000) (210,000) 90,000 $ (1,050,000) $410,000 $10,000 1,150,000 (300,000) $2,070,000 $ (490,000) (500,000) (1,000,000) $ (2,070,000) ProForm sold ChipRite Inventory costing $80,000 during the last six months of 2023 for $142,000. At year-end, 30 percent remained ProForm sold ClipRite Inventory costing $255,000 during 2024 for $360,000. 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. Consolidated Balance Sales Cost of goods sold 1.370.000 S 676,900 Operating expenses $ 381.000 Dividend income $ Net income attributable to noncontrolling interest Inventory $ 58.200 1,199.500 Noncontrolling interest in subsidiary, 12/31/24
Expert Solution
steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Auditing: A Risk Based-Approach (MindTap Course L…
Auditing: A Risk Based-Approach (MindTap Course L…
Accounting
ISBN:
9781337619455
Author:
Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher:
Cengage Learning
SWFT Comprehensive Vol 2020
SWFT Comprehensive Vol 2020
Accounting
ISBN:
9780357391723
Author:
Maloney
Publisher:
Cengage
Principles of Accounting Volume 1
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
CONCEPTS IN FED.TAX., 2020-W/ACCESS
CONCEPTS IN FED.TAX., 2020-W/ACCESS
Accounting
ISBN:
9780357110362
Author:
Murphy
Publisher:
CENGAGE L
Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
SWFT Individual Income Taxes
SWFT Individual Income Taxes
Accounting
ISBN:
9780357391365
Author:
YOUNG
Publisher:
Cengage
SEE MORE TEXTBOOKS