Following are several figures reported for Allister and Barone as of December 31, 2018: Allister Barone Inventory
Question:
Following are several figures reported for Allister and Barone as of December 31, 2018:
Allister | Barone | |||
Inventory | $ | 530,000 | $ | 330,000 |
Sales | 1,060,000 | 860,000 | ||
Investment income | not given | |||
Cost of goods sold | 530,000 | 430,000 | ||
Operating expenses | 245,000 | 315,000 | ||
Allister acquired 90 percent of Barone in January 2017. In allocating the newly acquired subsidiary's fair value at the acquisition date, Allister noted that Barone had developed a customer list worth $80,000 that was unrecorded on its accounting records and had a 4-year remaining life. Any remaining excess fair value over Barone's book value was attributed to goodwill. During 2018, Barone sells inventory costing $142,000 to Allister for $204,000. Of this amount, 10 percent remains unsold in Allister's warehouse at year-end.
Determine balances for the following items that would appear on Allister's consolidated financial statements for 2018:
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Fundamentals of Advanced Accounting
ISBN: 978-0077862237
6th edition
Authors: Joe Ben Hoyle, Thomas Schaefer, Timothy Doupnik