Compute for the Consolidated Asset for 2018. ProForm acquired 70 percent of ClipRite on June 30, 2017, for$910,000 in cash. Based on ClipRite's acquisition-date fair value,an unrecorded intangible of $400,000 was recognized and isbeing amortized at the rate of $10,000 per year. No goodwill wasrecognized in the acquisition.The noncontrolling interest fair value was assessed at $390,000 at the acquisition date. The 2018financial statements are as follows:ProFormClipRite$ (800,000) $ (600,000)400,000SalesCost of goods soldOperating expenses535,000100,000100,000Dividend income(35,000)$ (200,000)-0-Net income(100,000)$ (1,300,000) $ (850,000)(100,000)50,000Retained earnings, 1/1/18Net income(200,000)Dividends declared100,000Retained earnings, 12/31/18$ (1,400,000) $ (900,000)$ 400,000$ 300,000700,000Cash and receivablesInventory ....Investment in ClipRite.290,000910,000-0-Fixed assets1,000,000600,000Accumulated depreciation(300,000)$ 2,300,000(200,000)Totals$ 1,400,000$ (600,000) $ (400,000)(300,000)Liabilities(100,000)(900,000)Common stockRetained earnings, 12/31/18(1,400,000)$ (2,300,000) $(1,400,000)TotalsProForm sold ClipRite inventory costing $72,000 during the lastsix months of 2017 for $120,000. At year-end, 30 percentremained. ProForm sells ClipRite inventory costing $200,000during 2018 for $250,000. At year-end, 10 percent is left.

The question is related to Consolidated Financial Statements. Required Calculate Consolidated…

Answered: Compute for the Consolidated Asset for…

Business

Accounting

Compute for the Consolidated Asset for 2018

SWFT Comprehensive Vol 2020

43rd Edition

ISBN:9780357391723

Author:Maloney

Publisher:Maloney

Chapter14: Property Transact Ions: Capital Gains And Losses, § 1231, And Recapture Provisions

Section: Chapter Questions

Problem 75P

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ProForm acquired 70 percent of ClipRite on June 30, 2017, for $910,000 in cash. Based on Clip- Rite’s acquisition-date fair value, an unrecorded intangible of $400,000 was recognized and is being amortized at the rate of $10,000 per year. No goodwill was recognized in the acquisition.The noncontrolling interest fair value was assessed at $390,000 at the acquisition date. The 2018 financial statements are as follows:ProForm sold ClipRite inventory costing $72,000 during the last six months of 2017 for $120,000. At year-end, 30 percent remained. ProForm sells ClipRite inventory costing $200,000 during 2018 for $250,000. At year-end, 10 percent is left. With these facts, determine the consolidated balances for the following:SalesCost of Goods SoldOperating ExpensesDividend IncomeNet Income Attributable to Noncontrolling InterestInventoryNoncontrolling Interest in Subsidiary, 12/31/18
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