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ProForm acquired 60 percent of ClipRite on June 30, 2017, for $1,020,000 in cash. Based on ClipRite's acquisition-date fair value, an unrecorded intangible of $400,000 was recognized and is being amortized at the rate of $15,000 per year. No goodwill was recognized in the acquisition. The noncontrolling interest fair value was assessed at $680,000 at the acquisition date. The 2018 financial statements are as follows: 10 points ProForm $ (990,000 (980,000) ClipRite Sales Cost of goods sold Operating expenses Dividend income 630,000 290,000 (24,000 495,000 195,000 eBook $ 94,000) $ (290,000) (290,000) $(1,290,000) Net income Retained earnings, 1/1/18 Net income Dividends declared $ (2,400,000 (1,040,000) Print 94,000) 290,000 40,000 $ (2,204,000) Retained earnings, 12/31/18 Cash and receivables Inventory Investment in ClipRite Fixed assets Accumulated depreciation References $ 590,000 480,000 1,020,000 1,800,000 (500,000 $ 3,390,000 $ 490,000 890,000 1,550,000 (500,000 $ 2,430,000 Totals Liabilities Common stock Retained earnings, 12/31/18 $ (586,000) (540,000) (600,000) (2,204,000)(1,290,000) $(3,390,000 (2,430,000) (600,000) Totals ProForm sold ClipRite inventory costing $88,000 during the last six months of 2017 for $280,000. At year-end, 30 percent remained. ProForm sells ClipRite inventory costing $295,000 during 2018 for $440,000. At year-end, 10 percent is left. Determine the consolidated balances for the following accounts: Consolidated Balance S 1,530,000 S 641,900 S 500,000 Sales Cost of goods sold Operating expenses Dividend income Net income attributable to noncontrolling interest110,000 Inventory Noncontrolling interest in subsidiary, 12/31/18 S 1,355,500 ProForm acquired 60 percent of ClipRite on June 30, 2017, for $1,020,000 in cash. Based on ClipRite's acquisition-date fair value, an unrecorded intangible of $400,000 was recognized and is being amortized at the rate of $15,000 per year. No goodwill was recognized in the acquisition. The noncontrolling interest fair value was assessed at $680,000 at the acquisition date. The 2018 financial statements are as follows: 10 points ProForm $ (990,000 (980,000) ClipRite Sales Cost of goods sold Operating expenses Dividend income 630,000 290,000 (24,000 495,000 195,000 eBook $ 94,000) $ (290,000) (290,000) $(1,290,000) Net income Retained earnings, 1/1/18 Net income Dividends declared $ (2,400,000 (1,040,000) Print 94,000) 290,000 40,000 $ (2,204,000) Retained earnings, 12/31/18 Cash and receivables Inventory Investment in ClipRite Fixed assets Accumulated depreciation References $ 590,000 480,000 1,020,000 1,800,000 (500,000 $ 3,390,000 $ 490,000 890,000 1,550,000 (500,000 $ 2,430,000 Totals Liabilities Common stock Retained earnings, 12/31/18 $ (586,000) (540,000) (600,000) (2,204,000)(1,290,000) $(3,390,000 (2,430,000) (600,000) Totals ProForm sold ClipRite inventory costing $88,000 during the last six months of 2017 for $280,000. At year-end, 30 percent remained. ProForm sells ClipRite inventory costing $295,000 during 2018 for $440,000. At year-end, 10 percent is left. Determine the consolidated balances for the following accounts: Consolidated Balance S 1,530,000 S 641,900 S 500,000 Sales Cost of goods sold Operating expenses Dividend income Net income attributable to noncontrolling interest110,000 Inventory Noncontrolling interest in subsidiary, 12/31/18 S 1,355,500

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