ProForm acquired 80 percent of ClipRite on June 30, 2023, for $1,760,000 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 $20,000 per year. No goodwill was recognized in the acquisition. The noncontrolling interest fair value was assessed at $440,000 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 $ (1,040,000) 655,000 340,000 (72,000) $ (117,000) $ (3,900,000) (117,000) 340,000 Sales Cost of goods sold Operating expenses Dividend income Net income attributable to noncontrolling interest Inventory Noncontrolling interest in subsidiary, 12/31/24 $ 640,000 530,000 1,760,000 2,300,000 (500,000) ClipRite $ (1,080,000) 520,000 220,000 0 $ (3,677,000) $ (1,340,000) $540,000 940,000 0 $ 4,730,000 $ (653,000) (400,000) (3,677,000) $ (340,000) $ (1,090,000) (340,000) 90,000 $ 2,530,000 $ (790,000) (400,000) (1,340,000) $ (4,730,000) $ (2,530,000) 1,800,000 (750,000) ProForm sold ClipRite inventory costing $93,000 during the last six months of 2023 for $168,000. At year-end, 30 percent remained. ProForm sold ClipRite inventory costing $320,000 during 2024 for $490,000. 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
ProForm acquired 80 percent of ClipRite on June 30, 2023, for $1,760,000 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 $20,000 per year. No goodwill was recognized in the acquisition. The noncontrolling interest fair value was assessed at $440,000 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 $ (1,040,000) 655,000 340,000 (72,000) $ (117,000) $ (3,900,000) (117,000) 340,000 Sales Cost of goods sold Operating expenses Dividend income Net income attributable to noncontrolling interest Inventory Noncontrolling interest in subsidiary, 12/31/24 $ 640,000 530,000 1,760,000 2,300,000 (500,000) ClipRite $ (1,080,000) 520,000 220,000 0 $ (3,677,000) $ (1,340,000) $540,000 940,000 0 $ 4,730,000 $ (653,000) (400,000) (3,677,000) $ (340,000) $ (1,090,000) (340,000) 90,000 $ 2,530,000 $ (790,000) (400,000) (1,340,000) $ (4,730,000) $ (2,530,000) 1,800,000 (750,000) ProForm sold ClipRite inventory costing $93,000 during the last six months of 2023 for $168,000. At year-end, 30 percent remained. ProForm sold ClipRite inventory costing $320,000 during 2024 for $490,000. 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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:ProForm acquired 80 percent of ClipRite on June 30, 2023, for $1,760,000 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 $20,000 per year. No goodwill was
recognized in the acquisition. The noncontrolling interest fair value was assessed at $440,000 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
$ (1,040,000)
655,000
340,000
(72,000)
$ (117,000)
Sales
Cost of goods sold
Operating expenses
Dividend income
Net income attributable to noncontrolling interest
Inventory
Noncontrolling interest in subsidiary, 12/31/24
ClipRite
$ (1,080,000)
520,000
220,000
0
$ (340,000)
$ (3,900,000)
(117,000)
340,000
$ (1,090,000)
(340,000)
90,000
$ (3,677,000) $ (1,340,000)
$ 540,000
940,000
$ 640,000
530,000
1,760,000
2,300,000
(500,000)
0
$4,730,000
$ (653,000)
$ 2,530,000
$ (790,000)
(400,000)
(1,340,000)
(400,000)
(3,677,000)
$ (4,730,000) $ (2,530,000)
ProForm sold ClipRite inventory costing $93,000 during the last six months of 2023 for $168,000. At year-end, 30 percent remained.
ProForm sold ClipRite inventory costing $320,000 during 2024 for $490,000. At year-end, 10 percent is left.
1,800,000
(750,000)
Required:
With these facts, determine the consolidated balances for the following:
Note: Input all amounts as positive values.
Consolidated
Balance
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