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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

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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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
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