ProForm acquired 60 percent of ClipRite on June 30, 2020, for $840,000 in cash. Based on ClipRite's acquisition-date fair value, an unrecorded intangible of $700,000 was recognized and is being amortized at the rate of $12,000 per year. No goodwill was recognized in the acquisition. The noncontrolling interest fair value was assessed at $560,000 at the acquisition date. The 2021 financial statements are as follows:
Sales
Cost of goods sold
Operating expenses
Dividend income
Net income
Retained earnings, 1/1/21
Net income
Dividends declared
Retained earnings, 12/31/21
Cash and receivables
Inventory
Investment in ClipRite
Fixed assets
Accumulated depreciation
Totals
Liabilities
Common stock
Retained earnings, 12/31/21
Totals
ProForm
$ (960,000)
615,000
260,000
(48,000)
$ (133,000)
$ (2,000,000-)
(133.006)
260,000
$ (1,873,000)
$
560,000
450,000
840,000
1,300, 000
(200,000)
$ 2,950,000
$
(777,000)
(300,000)
(1,873,000)
$(2,950,000)
ClipRite
$
(920,000)
480,000
180,000
$ (260,000)
$(1,010,000)
(260,000)
80,000
$(1,190,000)
460,000
860,000
1, 400, 000
(350,000)
$ 2,370,000
(880,000)
(300,000)
(1,190,000)
$(2,370,000)
(Note: Parentheses indicate a credit balance.)
ClipRite sold ProForm inventory costing $85,000 during the last six months of 2020 for $250,000. At year-end, 30 percent remained.
ClipRite sold ProForm inventory costing $280,000 during 2021 for $410,000. 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
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