Pro-Form acquired 70 percent of Clip-Rite on June 30, 2017, for $910,000 in cash. Based on Clip-Rite's

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Pro-Form acquired 70 percent of Clip-Rite on June 30, 2017, for $910,000 in cash. Based on Clip-Rite's acquisition-date fair value, an unrecorded intangible of $400,000 was recognized and is being amortized at the rate of $10,000 per year. No goodwill was recognized in the acquisition. The non-controlling interest fair value was assessed at $390,000 at the acquisition date. The 2018 financial statements are as follows:
Compute the balances in problem (28) again, assuming that all intra-entity transfers were made from Clip-Rite to Pro-Form.
Pro-Form acquired 70 percent of Clip-Rite on June 30, 2017,

Pro-Form sold Clip-Rite inventory costing $72,000 during the last six months of 2017 for $120,000. At year-end, 30 percent remained. Pro-Form sells Clip-Rite inventory costing $200,000 during 2018 for $250,000. At year-end, 10 percent is left. With these facts, determine the consolidated balances for the following:
Sales
Cost of Goods Sold
Operating Expenses
Dividend Income
Net Income Attributable to Non-controlling Interest
Inventory
Non-controlling Interest in Subsidiary, 12/31/18

Goodwill
Goodwill is an important concept and terminology in accounting which means good reputation. The word goodwill is used at various places in accounting but it is recognized only at the time of a business combination. There are generally two types of...
Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...
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Advanced Accounting

ISBN: 978-1259444951

13th edition

Authors: Joe Ben Hoyle, Thomas Schaefer, Timothy Doupni

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