ProForm acquired 70 percent of ClipRite on June 30, 2023, for $1,470,000 in cash. Based on ClipRite's acquisition-date fair value, an unrecorded intangible of $760,000 was recognized and is being amortized at the rate of $19,000 per year. No goodwill was recognized in the acquisition. The noncontrolling interest fair value was assessed at $630,000 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 ClipRite Fixed assets Accumulated depreciation Totals Liabilities Common stock Retained earnings, 12/31/24 Totals Note: Parentheses indicate a credit balance. ProForm $ (1,030,000) 650,000 330,000 (56,000) $ (106,000) $ (3,800,000) (106,000) 330,000 $ (3,576,000) $ 630,000 520,000 1,470,000 2,200,000 (400,000) $ 4,420,000 $ (544,000) (300,000) (3,576,000) $ (4,420,000) ClipRite $ (1,060,000) 515,000 215,000 0 $ (330,000) $ (1,080,000) (330,000) 80,000 $ (1,330,000) $ 530,000 930,000 0 1,750,000 (700,000) $ 2,510,000 $ (880,000) (300,000) (1,330,000) $ (2,510,000) ProForm sold ClipRite inventory costing $92,000 during the last six months of 2023 for $166,000. At year-end, 30 percent remained. ProForm sold ClipRite inventory costing $315,000 during 2024 for $480,000. 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. Sales Cost of goods sold Operating expenses Dividend income Net income attributable to noncontrolling interest Inventory Noncontrolling interest in subsidiary, 12/31/24 Consolidated Balance
ProForm acquired 70 percent of ClipRite on June 30, 2023, for $1,470,000 in cash. Based on ClipRite's acquisition-date fair value, an unrecorded intangible of $760,000 was recognized and is being amortized at the rate of $19,000 per year. No goodwill was recognized in the acquisition. The noncontrolling interest fair value was assessed at $630,000 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 ClipRite Fixed assets Accumulated depreciation Totals Liabilities Common stock Retained earnings, 12/31/24 Totals Note: Parentheses indicate a credit balance. ProForm $ (1,030,000) 650,000 330,000 (56,000) $ (106,000) $ (3,800,000) (106,000) 330,000 $ (3,576,000) $ 630,000 520,000 1,470,000 2,200,000 (400,000) $ 4,420,000 $ (544,000) (300,000) (3,576,000) $ (4,420,000) ClipRite $ (1,060,000) 515,000 215,000 0 $ (330,000) $ (1,080,000) (330,000) 80,000 $ (1,330,000) $ 530,000 930,000 0 1,750,000 (700,000) $ 2,510,000 $ (880,000) (300,000) (1,330,000) $ (2,510,000) ProForm sold ClipRite inventory costing $92,000 during the last six months of 2023 for $166,000. At year-end, 30 percent remained. ProForm sold ClipRite inventory costing $315,000 during 2024 for $480,000. 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. Sales Cost of goods sold Operating expenses Dividend income Net income attributable to noncontrolling interest Inventory Noncontrolling interest in subsidiary, 12/31/24 Consolidated Balance
Chapter11: Long-term Assets
Section: Chapter Questions
Problem 11PB: On May 1, 2015, Zoe Inc. purchased Branta Corp. for $15,000,000 in cash. They only received...
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Transcribed Image Text:ProForm acquired 70 percent of ClipRite on June 30, 2023, for $1,470,000 in cash. Based on ClipRite's acquisition-date fair value,
an unrecorded intangible of $760,000 was recognized and is being amortized at the rate of $19,000 per year. No goodwill was
recognized in the acquisition. The noncontrolling interest fair value was assessed at $630,000 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 ClipRite
Fixed assets
Accumulated depreciation
Totals
Liabilities
Common stock
Retained earnings, 12/31/24
Totals
Note: Parentheses indicate a credit balance.
ProForm
$ (1,030,000)
650,000
330,000
(56,000)
$ (106,000)
$ (3,800,000)
(106,000)
330,000
$ (3,576,000)
$ 630,000
520,000
1,470,000
2,200,000
(400,000)
$ 4,420,000
$ (544,000)
(300,000)
(3,576,000)
$ (4,420,000)
ClipRite
$ (1,060,000)
515,000
215,000
0
$ (330,000)
$ (1,080,000)
(330,000)
80,000
$ (1,330,000)
$ 530,000
930,000
0
1,750,000
(700,000)
$ 2,510,000
$ (880,000)
(300,000)
(1,330,000)
$ (2,510,000)
ProForm sold ClipRite inventory costing $92,000 during the last six months of 2023 for $166,000. At year-end, 30 percent
remained. ProForm sold ClipRite inventory costing $315,000 during 2024 for $480,000. 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.
Sales
Cost of goods sold
Operating expenses
Dividend income
Net income attributable to noncontrolling interest
Inventory
Noncontrolling interest in subsidiary, 12/31/24
Consolidated
Balance
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