FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Following are several figures reported for Allister and Barone as of December 31, 2018:
Allister Barone
Inventory . . . .. . $ 500,000 $300,000
Sales . . . . . . . . . 1,000,000 800,000
Investment income not given
Cost of goods sold 500,000 400,000
Operating expenses 230,000 300,00
Allister acquired 90 percent of Barone in January 2017. In allocating the newly acquired subsidiary’s fair value at the acquisition date, Allister noted that Barone had developed a customer
list worth $78,000 that was unrecorded on its accounting records and had a 4 year remaining life. Any remaining excess fair value over Barone’s book value was attributed to
remains unsold in Allister’s warehouse at year-end.
Determine balances for the following items that would appear on Allister’s consolidated financial statements for 2018:
Inventory
Sales
Cost of Goods Sold
Operating Expenses
Net Income Attributable to Noncontrolling Interest
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