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  3. proform acquired 80 percent of cliprite on june 30 2017...

Question: proform acquired 80 percent of cliprite on june 30 2017...

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ProForm acquired 80 percent of ClipRite on June 30, 2017, for $800,000 in cash. Based on ClipRite's acquisition-date fair value, an unrecorded intangible of $500,000 was recognized and is being amortized at the rate of $17,000 per year. No goodwill was recognized in the acquisition. The noncontrolling interest fair value was assessed at $200,000 at the acquisition date. The 2018 financial statements are as follows:

ProForm ClipRite Sales Cost of goods sold Operating expenses Dividend income $ (920,000) $ (840,000) 460,000 160,000 0 595,000 220,000 (80,000) $ (185,000) $ (220,000) Net income Retained earnings, 1/1/18 Net income Dividends declared $(1,600,000) (970,00e) (220,000) (185,000]) 220,000 100,000 Retained earnings, 12/31/18 $(1,565,000) $(1,090,000) Cash and receivables Inventory Investment in clipRite Fixed assets Accumulated depreciation $ 520,000 $ 420,000 820,000 0 1,200,000 (350,000) $ 2,630,000 $ 2,090,000 $ (465,000) $ (400,000) (600,0001) (1,565,000 (1,090,000) 410,000 800,000 1,100,000 (200,000) lotals Liabilities Common stock Retained earnings, 12/31/18 (600,000) lotals $(2,630,000) $(2,090,000)

ProForm sold ClipRite inventory costing $81,000 during the last six months of 2017 for $210,000. At year-end, 30 percent remained. ProForm sells ClipRite inventory costing $260,000 during 2018 for $370,000. At year-end, 10 percent is left.

Determine the consolidated balances for the following accounts:


Consolidated Balance $(1,390,000) $ 657,300 $ 397,000 Sales Cost of goods sold Operating expenses Dividend income Net income attributable to noncontrolling interest Inventory Noncontrolling interest in subsidiary, 12/31/18 1,219,000

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