Question: Please help me with the last one, thank you ProForm acquired 60 percent of ClipRite on June 30, 2020, for $780,000 in cash. Based on

Please help me with the last one, thank you

ProForm acquired 60 percent of ClipRite on June 30, 2020, for $780,000 in cash. Based on ClipRite's acquisition-date fair value, an unrecorded intangible of $550,000 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 $520,000 at the acquisition date. The 2021 financial statements are as follows:

ProForm ClipRite
Sales $ (840,000 ) $ (680,000 )
Cost of goods sold 555,000 420,000
Operating expenses 140,000 120,000
Dividend income (54,000 ) 0
Net income $ (199,000 ) $ (140,000 )
Retained earnings, 1/1/21 $ (1,300,000 ) $ (890,000 )
Net income (199,000 ) (140,000 )
Dividends declared 140,000 90,000
Retained earnings, 12/31/21 $ (1,359,000 ) $ (940,000 )
Cash and receivables $ 440,000 $ 340,000
Inventory 330,000 740,000
Investment in ClipRite 780,000 0
Fixed assets 1,400,000 800,000
Accumulated depreciation (500,000 ) (250,000 )
Totals $ 2,450,000 $ 1,630,000
Liabilities $ (591,000 ) $ (190,000 )
Common stock (500,000 ) (500,000 )
Retained earnings, 12/31/21 (1,359,000 ) (940,000 )
Totals $ (2,450,000 ) $ (1,630,000 )

(Note: Parentheses indicate a credit balance.)

ClipRite sold ProForm inventory costing $73,000 during the last six months of 2020 for $130,000. At year-end, 30 percent remained. ClipRite sold ProForm inventory costing $220,000 during 2021 for $290,000. At year-end, 10 percent is left.

Determine 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

Please help me with the last one, thank you ProForm acquired 60

Answer is complete but not entirely correct. $ Sales Cost of goods sold Operating expenses Dividend income Net income attributable to noncontrolling interest Inventory Noncontrolling interest in subsidiary, 12/31/21 Consolidated Balance $ 1,230,000 674,900 $ 274,000 $ 0 54.440 1,063,000 737,200 01 $ $ $

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!