ProForm acquired 70 percent of ClipRite on June 30, 2023, for $1,400,000 in cash. Based on ClipRite's acquisition-date fair value, ar unrecorded intangible of $640,000 was recognized and is being amortized at the rate of $16,000 per year. No goodwill was recognized in the acquisition. The noncontrolling interest fair value was assessed at $600.000 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 Clipkite Fixed assets Accumulated depreciation Totals Liabilities Common stock Retained earnings, 12/31/24 Totals Proform $ (910,000) 590,000 210,000 (63,000) $ (173,000) Sales Cost of goods sold Operating expenses Dividend income $ (2,000,000) (173,000) 210,000 $ (1,963,000) Net income attributable to noncontrolling interest Inventory Noncontrolling interest in subsidiary, 12/31/24 $ 510,000 400,00 1,400,000 1,000,000 (200,000) $ 3,110,000 $ (647,000) (500,000) (1,961,000) ClipRite $ (820,000) 455,000 155,000 e $ 2,070,000 $ (490,000) (500,000) (1,000,000) $ (3,110,000) $ (2,070,000) Note: Parentheses indicate a credit balance ProForm sold ClipRite Inventory costing $80,000 during the last six months of 2023 for $142,000. At year-end, 30 percent remained ProForm sold ClipRite Inventory costing $255,000 during 2024 for $360,000 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. Consolidated Balance $ (210,000) $ (960,000) (210,000) 90,000 $ (1,050,000) $ 410,000 $10,000 S S 1.370.000 676,900 S 381,000 S 0 58.200 S S 1,199.500 e 1,150,000 (300,000)
ProForm acquired 70 percent of ClipRite on June 30, 2023, for $1,400,000 in cash. Based on ClipRite's acquisition-date fair value, ar unrecorded intangible of $640,000 was recognized and is being amortized at the rate of $16,000 per year. No goodwill was recognized in the acquisition. The noncontrolling interest fair value was assessed at $600.000 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 Clipkite Fixed assets Accumulated depreciation Totals Liabilities Common stock Retained earnings, 12/31/24 Totals Proform $ (910,000) 590,000 210,000 (63,000) $ (173,000) Sales Cost of goods sold Operating expenses Dividend income $ (2,000,000) (173,000) 210,000 $ (1,963,000) Net income attributable to noncontrolling interest Inventory Noncontrolling interest in subsidiary, 12/31/24 $ 510,000 400,00 1,400,000 1,000,000 (200,000) $ 3,110,000 $ (647,000) (500,000) (1,961,000) ClipRite $ (820,000) 455,000 155,000 e $ 2,070,000 $ (490,000) (500,000) (1,000,000) $ (3,110,000) $ (2,070,000) Note: Parentheses indicate a credit balance ProForm sold ClipRite Inventory costing $80,000 during the last six months of 2023 for $142,000. At year-end, 30 percent remained ProForm sold ClipRite Inventory costing $255,000 during 2024 for $360,000 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. Consolidated Balance $ (210,000) $ (960,000) (210,000) 90,000 $ (1,050,000) $ 410,000 $10,000 S S 1.370.000 676,900 S 381,000 S 0 58.200 S S 1,199.500 e 1,150,000 (300,000)
Auditing: A Risk Based-Approach (MindTap Course List)
11th Edition
ISBN:9781337619455
Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Chapter12: Auditing Long-lived Assets And Merger And Acquisition Activity
Section: Chapter Questions
Problem 37RQSC
Related questions
Question
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps with 4 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Auditing: A Risk Based-Approach (MindTap Course L…
Accounting
ISBN:
9781337619455
Author:
Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher:
Cengage Learning
Auditing: A Risk Based-Approach (MindTap Course L…
Accounting
ISBN:
9781337619455
Author:
Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher:
Cengage Learning
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning