ProForm acquired 80 percent of ClipRite on June 30, 2020, for $1,280,000 in cash. Based on ClipRite's acquisition-date fair value, an unrecorded intangible of $800,000 was recognized and is being amortized at the rate of $14,000 per year. No goodwill was recognized in the acquisition. The noncontrolling interest fair value was assessed at $320,000 at the acquisition date. The 2021 financial statements are as follows: Sales Cost of goods sold Operating expenses Dividend income Net income Retained earnings, 1/1/21 Net income Dividends declared Retained earnings, 12/31/21 Cash and receivables Inventory Investment in ClipRite. Fixed assets Accumulated depreciation Totals Liabilities Common stock Retained earnings, 12/31/21 Totals ProForm $ (980,000) 625,000 280,000 (80,000) $ (155,000) $ (280,000) Sales Cost of Goods Sold $(2,500,000) (155,000) 280,000 $(2,375,000) $ 580,000 470,000 1,280,000 1,500,000 (400,000) $ 3,430,000 $ (555,000) (500,000) (2,375,000) $(3,430,000) ClipRite $ (960,000) 490,000 190,000 0 $(1,030,000) (280,000) 100,000 $(1,210,000) 480,000 880,000 $ 0 1,500,000 (450,000) $ 2,410,000 $(700,000) (500,000) (1,210,000) $(2,410,000) (Note: Parentheses indicate a credit balance.) ClipRite sold ProForm inventory costing $87,000 during the last six months of 2020 for $270,000. At year-end, 30 percent remained. ClipRite sold ProForm inventory costing $290,000 during 2021 for $430,000. At year-end, 10 percent is left. Determine the consolidated balances for the following: (Input all amounts as positive values.)
ProForm acquired 80 percent of ClipRite on June 30, 2020, for $1,280,000 in cash. Based on ClipRite's acquisition-date fair value, an unrecorded intangible of $800,000 was recognized and is being amortized at the rate of $14,000 per year. No goodwill was recognized in the acquisition. The noncontrolling interest fair value was assessed at $320,000 at the acquisition date. The 2021 financial statements are as follows: Sales Cost of goods sold Operating expenses Dividend income Net income Retained earnings, 1/1/21 Net income Dividends declared Retained earnings, 12/31/21 Cash and receivables Inventory Investment in ClipRite. Fixed assets Accumulated depreciation Totals Liabilities Common stock Retained earnings, 12/31/21 Totals ProForm $ (980,000) 625,000 280,000 (80,000) $ (155,000) $ (280,000) Sales Cost of Goods Sold $(2,500,000) (155,000) 280,000 $(2,375,000) $ 580,000 470,000 1,280,000 1,500,000 (400,000) $ 3,430,000 $ (555,000) (500,000) (2,375,000) $(3,430,000) ClipRite $ (960,000) 490,000 190,000 0 $(1,030,000) (280,000) 100,000 $(1,210,000) 480,000 880,000 $ 0 1,500,000 (450,000) $ 2,410,000 $(700,000) (500,000) (1,210,000) $(2,410,000) (Note: Parentheses indicate a credit balance.) ClipRite sold ProForm inventory costing $87,000 during the last six months of 2020 for $270,000. At year-end, 30 percent remained. ClipRite sold ProForm inventory costing $290,000 during 2021 for $430,000. At year-end, 10 percent is left. Determine the consolidated balances for the following: (Input all amounts as positive values.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Nn.195.
Subject :- Account
Transcribed Image Text:ProForm acquired 80 percent of ClipRite on June 30, 2020, for $1,280,000 in cash. Based on ClipRite's acquisition-date fair value, an
unrecorded intangible of $800,000 was recognized and is being amortized at the rate of $14,000 per year. No goodwill was
recognized in the acquisition. The noncontrolling interest fair value was assessed at $320,000 at the acquisition date. The 2021
financial statements are as follows:
Sales
Cost of goods sold
Operating expenses
Dividend income
Net income
Retained earnings, 1/1/21
Net income
Dividends declared i
Retained earnings, 12/31/21
Cash and receivables
Inventory
Investment in ClipRite
Fixed assets
Accumulated depreciation
Totals
Liabilities
Common stock
Retained earnings, 12/31/21
Totals
ProForm
$ (980,000)
625,000
280,000
(80,000)
$ (155,000) $ (280,000)
Sales
Cost of Goods Sold
$(2,500,000)
(155,000)
280,000
$(2,375,000)
580,000
470,000
1,280,000
1,500,000
(400,000)
$
$ 3,430,000
$ (555,000)
(500,000)
(2,375,000)
$(3,430,000)
ClipRite
$ (960,000)
490,000
190,000
0
$(1,030,000)
(280,000)
100,000
$(1,210,000)
480,000
880,000
$
0
1,500,000
(450,000)
$ 2,410,000
$ (700,000)
(500,000)
(1,210,000)
$(2,410,000)
(Note: Parentheses indicate a credit balance.)
ClipRite sold ProForm inventory costing $87,000 during the last six months of 2020 for $270,000. At year-end, 30 percent remained.
ClipRite sold ProForm inventory costing $290,000 during 2021 for $430,000. At year-end, 10 percent is left.
Determine the consolidated balances for the following: (Input all amounts as positive values.)
Transcribed Image Text:mine the consolidated balances for the following: (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, 12/31/21
Answer is complete but not entirely correct.
Consolidated
Balance
Sales
Cost of goods sold
Operating expenses
Dividend income
Net income attributable to noncontrolling interest
Inventory
Noncontrolling interest in subsidiary, 12/31/21
$
$
$
$
$
$
$
1,510,000
644,100
484,000
0
53,200 x
1,336,000
449,800
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