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Cost of goods sold Operating expenses Dividend income Net income Retained earnings, 1/1/24 Net income Dividends declared Retained earnings, 12/31/24 Cash and receivables Inventory Investment in clipRite Fixed assets Accumulated depreciation Totals Liabilities Common stock Retained earnings, 12/31/24 Totals 540,000 110,000 (36,000) $ (196,000) $ (1,000,000) (196,000) 110,000 $ (1,086,000) $ 410,000 300,000 600,000 1,100,000 (500,000) $ 1,910,000 $ (624,000) (200,000) (1,086,000) $ (1,910,000) 405,000 105,000 @ $ (110,000) $ (860,000) (110,000) 60,000 $ (910,000) $ 310,000 710,000 e 650,000 (250,000) $ 1,420,000 $ (310,000) (200,000) (910,000) $ (1,420,000)

Cost of goods sold Operating expenses Dividend income Net income Retained earnings, 1/1/24 Net income Dividends declared Retained earnings, 12/31/24 Cash and receivables Inventory Investment in clipRite Fixed assets Accumulated depreciation Totals Liabilities Common stock Retained earnings, 12/31/24 Totals 540,000 110,000 (36,000) $ (196,000) $ (1,000,000) (196,000) 110,000 $ (1,086,000) $ 410,000 300,000 600,000 1,100,000 (500,000) $ 1,910,000 $ (624,000) (200,000) (1,086,000) $ (1,910,000) 405,000 105,000 @ $ (110,000) $ (860,000) (110,000) 60,000 $ (910,000) $ 310,000 710,000 e 650,000 (250,000) $ 1,420,000 $ (310,000) (200,000) (910,000) $ (1,420,000)

Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter13: Investments And Long-term Receivables
Section: Chapter Questions
Problem 8MC
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ProForm acquired 60 percent of ClipRite on June 30, 2023, for $600,000 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 $11,000 per year. No goodwill was recognized in the acquisition. The noncontrolling interest fair value was assessed at $400,000 at the acquisition date. The 2024 financial statements are as follows: Items Sales Cost of goods sold Operating expenses Dividend income Net income Retained earnings, 1/1/24 Net income Dividends declared Retained earnings, 12/31/24 Cash and receivables Inventory Investment in clipRite Fixed assets Accumulated depreciation Totals Liabilities Common stock Retained earnings, 12/31/24 Totals ProForm $ (810,000) 540,000 110,000 (36,000) $ (196,000) $ (1,000,000) (196,000) 110,000 $ (1,086,000) $ 410,000 300,000 600,000 1,100,000 (500,000) $ 1,910,000 $ (624,000) (200,000) (1,086,000) $ (1,910,000) ClipRite $ (620,000) 405,000 105,000 $ (110,000) $ (860,000) (110,000) 60,000 $ (910,000) $ 310,000 710,000 8 650,000 (250,000) $ 1,420,000 $ (310,000) (200,000) (910,000) $ (1,420,000) Note: Parentheses indicate a credit balance. ClipRite sold ProForm Inventory costing $70,000 during the last six months of 2023 for $100,000. At year-end, 30 percent remained. ClipRite sold ProForm Inventory costing $205,000 during 2024 for $260,000. At year-end, 10 percent is left. Required: With these facts, determine the consolidated balances for the following: Note: 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, 12/31/24 Consolidated Balance
Transcribed Image Text:ProForm acquired 60 percent of ClipRite on June 30, 2023, for $600,000 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 $11,000 per year. No goodwill was recognized in the acquisition. The noncontrolling interest fair value was assessed at $400,000 at the acquisition date. The 2024 financial statements are as follows: Items Sales Cost of goods sold Operating expenses Dividend income Net income Retained earnings, 1/1/24 Net income Dividends declared Retained earnings, 12/31/24 Cash and receivables Inventory Investment in clipRite Fixed assets Accumulated depreciation Totals Liabilities Common stock Retained earnings, 12/31/24 Totals ProForm $ (810,000) 540,000 110,000 (36,000) $ (196,000) $ (1,000,000) (196,000) 110,000 $ (1,086,000) $ 410,000 300,000 600,000 1,100,000 (500,000) $ 1,910,000 $ (624,000) (200,000) (1,086,000) $ (1,910,000) ClipRite $ (620,000) 405,000 105,000 $ (110,000) $ (860,000) (110,000) 60,000 $ (910,000) $ 310,000 710,000 8 650,000 (250,000) $ 1,420,000 $ (310,000) (200,000) (910,000) $ (1,420,000) Note: Parentheses indicate a credit balance. ClipRite sold ProForm Inventory costing $70,000 during the last six months of 2023 for $100,000. At year-end, 30 percent remained. ClipRite sold ProForm Inventory costing $205,000 during 2024 for $260,000. At year-end, 10 percent is left. Required: With these facts, determine the consolidated balances for the following: Note: 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, 12/31/24 Consolidated Balance
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