ProForm acquired 70 percent of ClipRite on June 30, 2023, for $1,400,000 in cash. Based on ClipRite's acquisition-date fair value, ar 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 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 Clipkite Fixed assets Accumulated depreciation Totals Liabilities Common stock Retained earnings, 12/31/24 Totals Proform $ (910,000) 590,000 210,000 (63,000) $ (173,000) Sales Cost of goods sold Operating expenses Dividend income $ (2,000,000) (173,000) 210,000 $ (1,963,000) Net income attributable to noncontrolling interest Inventory Noncontrolling interest in subsidiary, 12/31/24 $ 510,000 400,00 1,400,000 1,000,000 (200,000) $ 3,110,000 $ (647,000) (500,000) (1,961,000) ClipRite $ (820,000) 455,000 155,000 e $ 2,070,000 $ (490,000) (500,000) (1,000,000) $ (3,110,000) $ (2,070,000) Note: Parentheses indicate a credit balance ProForm sold ClipRite 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 $ (210,000) $ (960,000) (210,000) 90,000 $ (1,050,000) $ 410,000 $10,000 S S 1.370.000 676,900 S 381,000 S 0 58.200 S S 1,199.500 e 1,150,000 (300,000)
ProForm acquired 70 percent of ClipRite on June 30, 2023, for $1,400,000 in cash. Based on ClipRite's acquisition-date fair value, ar 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 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 Clipkite Fixed assets Accumulated depreciation Totals Liabilities Common stock Retained earnings, 12/31/24 Totals Proform $ (910,000) 590,000 210,000 (63,000) $ (173,000) Sales Cost of goods sold Operating expenses Dividend income $ (2,000,000) (173,000) 210,000 $ (1,963,000) Net income attributable to noncontrolling interest Inventory Noncontrolling interest in subsidiary, 12/31/24 $ 510,000 400,00 1,400,000 1,000,000 (200,000) $ 3,110,000 $ (647,000) (500,000) (1,961,000) ClipRite $ (820,000) 455,000 155,000 e $ 2,070,000 $ (490,000) (500,000) (1,000,000) $ (3,110,000) $ (2,070,000) Note: Parentheses indicate a credit balance ProForm sold ClipRite 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 $ (210,000) $ (960,000) (210,000) 90,000 $ (1,050,000) $ 410,000 $10,000 S S 1.370.000 676,900 S 381,000 S 0 58.200 S S 1,199.500 e 1,150,000 (300,000)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
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 cliptite
Fixed assets
Accumulated depreciation
Totals
Liabilities
Common stock
Retained earnings, 12/31/24
Totals
Proform
$ (910,000)
590,000
210,000
(63,000)
$ (173,000)
$ (2,000,000)
(173,000)
210,000
Sales
Cost of goods sold
Operating expenses
Dividend income
Net income attributable to noncontrolling interest
Inventory
Noncontrolling interest in subsidiary, 12/31/24
$ (1,963,000)
$ 510,000
400,000
1,400,000
1,000,000
(200,000)
Consolidated
Balance
ClipRite
$ (820,000)
455,000
155,000
Required:
With these facts, determine the consolidated balances for the following
Note: Input all amounts as positive values.
S 1.370.000
S
676,900
381,000
0
58.200
1,199,500
$ 3,110,000
$ (647,000)
(500,000)
(1,963,000)
1,150,000
(300,000)
$ 2,070,000
$ (490,000)
(500,000)
(1,000,000)
$ (3,110,000) $ (2,070,000)
Note: Parentheses indicate a credit balance
ProForm sold ClipRite 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.
S
S
e
$ (210,000)
$ (960,000)
(210,000)
90,000
$ (1,050,000)
S
S
410,000
$10,000
0
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