GGG ProForm acquired 70 percent of ClipRite on June 30, 2023, for $910,000 in cash. Based on ClipRite's acquisition-date fair value, anunrecorded intangible of $400,000 was recognized and is being amortized at the rate of $10,000 per year. No goodwill wasrecognized in the acquisition. The noncontrolling interest fair value was assessed at $390,000 at the acquisition date. The 2024financial statements are as follows:ItemsSalesCost of goods soldOperating expensesDividend incomeNet incomeRetained earnings, 1/1/24Net incomeDividends declaredRetained earnings, 12/31/24Cash and receivablesInventoryInvestment in ClipRiteFixed assetsAccumulated depreciationTotalsLiabilitiesCommon stockRetained earnings, 12/31/24TotalsNote: Parentheses indicate a credit balance.ProForm$ (800,000)535,000100,000(35,000)$ (200,000)$ (1,300,000)(200,000)100,000$ (1,400,000)$ 400,000290,000910,0001,000,000(300,000)$ 2,300,000SalesCost of goods soldOperating expensesDividend incomeNet income attributable to noncontrolling interestInventoryNoncontrolling interest in subsidiary, 12/31/24ClipRite$ (600,000)400,000100,000$ (100,000)$ (850,000)(100,000)50,000$ (900,000)$ 300,000700,0000Answer is complete but not entirely correct.ConsolidatedBalance600,000(200,000)$ 1,400,000$ (400,000)(100,000)(900,000)$ (600,000)(300,000)(1,400,000)$ (2,300,000) $ (1,400,000)ClipRite sold ProForm inventory costing $72,000 during the last six months of 2023 for $120,000. At year-end, 30 percent remained.ClipRite sold ProForm inventory costing $200,000 during 2024 for $250,000. 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.$1,150,000✔$ 675,600✔$210,000✔$$$$27,000 X985,000✔355,500 ×

Consolidation is an activity in which financial statements of a parent and its subsidiary should be…

ProForm acquired 70 percent of ClipRite on June 30, 2023, for $910,000 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 $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 2024 financial statements are as follows:

ProForm acquired 70 percent of ClipRite on June 30, 2023, for $910,000 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 $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 2024 financial statements are as follows:

SWFT Essntl Tax Individ/Bus Entities 2020

23rd Edition

ISBN:9780357391266

Author:Nellen

Publisher:Nellen

Chapter8: Property Transactions: Capital Gains And Losses, Section 1231 And Recapture Provisions

Section: Chapter Questions

Problem 38P

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On May 1, 2015, Zoe Inc. purchased Branta Corp. for $15,000,000 in cash. They only received $12,000,000 in net assets. In 2016, the market value of the goodwill obtained from Branta Corp. was valued at $4,000,000, but in 2017 it dropped to $2,000,000. Prepare the journal entry for the creation of goodwill and the entry to record any impairments to it in subsequent years.
ProForm acquired 70 percent of ClipRite on June 30, 2023, for $1,400,000 in cash. Based on ClipRite's acquisition-date fair value, an 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 Itens 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 cliptite 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) $ (2,000,000) (173,000) 210,000 Sales Cost of goods sold Operating expenses Dividend income Net income attributable to noncontrolling interest Inventory Noncontrolling interest in subsidiary, 12/31/24 $…
ProForm acquired 70 percent of ClipRite on June 30, 2023, for $910,000 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 $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 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 Note: Parentheses indicate a credit balance. ProForm $ (800,000) 535,000 100,000 (35,000) $ (200,000) $ (1,300,000) (200,000) 100,000 $ (1,400,000) $ 400,000 290,000 910,000 1,000,000 (300,000) $ 2,300,000 Sales Cost of goods sold Operating expenses Dividend…
ProForm acquired 60 percent of ClipRite on June 30, 2023, for $780,000 in cash. Based on ClipRite's acquisition-date fair value, an unrecorded intangible of $560,000 was recognized and is being amortized at the rate of $14,000 per year. No goodwill was recognized in the acquisition. The noncontrolling interest fair value was assessed at $520,000 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 A32 Accumulated depreciation Totals Liabilities Common stock Retained earnings, 12/31/24 Totals Proform $ (840,000) 555,000 140,000 (54,000) $ (199,000) Sales Cost of goods sold Operating expenses Dividend income Net income attributable to noncontrolling interest Inventory Noncontrolling Interest in subsidiary, 12/31/24 $ (1,300,000) (199,000) 140,000…
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 $440,000 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 Note: Parentheses indicate a credit balance. 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)…
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) $…
ProForm acquired 70 percent of ClipRite on June 30, 2020, for $910,000 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 $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 2021 financial statements are as follows: ProForm ClipRite Sales $ (800,000 ) $ (600,000 ) Cost of goods sold 535,000 400,000 Operating expenses 100,000 100,000 Dividend income (35,000 ) 0 Net income $ (200,000 ) $ (100,000 ) Retained earnings, 1/1/21 $ (1,300,000 ) $ (850,000 ) Net income (200,000 ) (100,000 ) Dividends declared 100,000 50,000 Retained earnings, 12/31/21 $ (1,400,000 ) $ (900,000 ) Cash and receivables $ 400,000 $ 300,000 Inventory 290,000 700,000 Investment in ClipRite 910,000 0…
ProForm acquired 70 percent of ClipRite on June 30, 2020, for $910,000 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 $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 2021 financial statements are as follows: *see image ClipRite sold ProForm inventory costing $72,000 during the last six months of 2020 for $120,000. At year-end, 30 percent remained. ClipRite sold ProForm inventory costing $200,000 during 2021 for $250,000. At year-end, 10 percent is left. Determine the consolidated balances for the following: SalesCost of Goods SoldOperating ExpensesDividend IncomeNet Income Attributable to Noncontrolling InterestInventoryNoncontrolling Interest in Subsidiary, 12/31/21
ProForm acquired 60 percent of ClipRite on June 30, 2020, for $1,140,000 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 $15,000 per year. No goodwill was recognized in the acquisition. The noncontrolling interest fair value was assessed at $760,000 at the acquisition date. The 2021 financial statements are as follows: Sales Cost of goods sold Operating expenses Dividend income Net income Retained earnings, 1/1/21 Net income Dividends declared Retained earnings, 12/31/21 Cash and receivables Inventory Investment in ClipRite Fixed assets Accumulated depreciation Totals Liabilities Common stock Retained earnings, 12/31/21 Totals Sales Cost of Goods Sold ProForm (900,000) 585,000 200,000 (48,000) $ (163,000) $ $ 500,000 390,000 1,140,000 2,000,000 (700,000) $ 3,330,000 $ (667,000) (400,000) (2,263,000) $ (3,330,000) Sales Cost of goods sold Operating expenses Dividend income Net income…
ProForm acquired 60 percent of ClipRite on June 30, 2020, for $1,140,000 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 $15,000 per year. No goodwill was recognized in the acquisition. The noncontrolling interest fair value was assessed at $760,000 at the acquisition date. The 2021 financial statements are as follows: Sales Cost of goods sold Operating expenses Dividend income Net income Retained earnings, 1/1/21 Net income Dividends declared Retained earnings, 12/31/21 Cash and receivables Inventory Investment in ClipRite Fixed assets Accumulated depreciation Totals Liabilities Common stock Retained earnings, 12/31/21 Totals Sales Cost of Goods Sold ProForm ClipRite $ (900,000) $ (800,000) 450,000 585,000 200,000 (48,000) 150,000 0 $ (163,000) $ (200,000) $ (950,000) (200,000) 80,000 $(1,070,000) $ 400,000 800,000 0 $(2,300,000) (163,000) 200,000 $(2,263,000) $ 500,000 390,000…
ProForm acquired 70 percent of ClipRite on June 30, 2020, for $770,000 in cash. Based on ClipRite's acquisition-date fair value, an unrecorded intangible of $480,000 was recognized and is being amortized at the rate of $12,000 per year. No goodwill was recognized in the acquisition. The noncontrolling interest fair value was assessed at $330,000 at the acquisition date. The 2021 financial statements are as follows: ProForm ClipRite Sales $ (820,000 ) $ (640,000 ) Cost of goods sold 545,000 410,000 Operating expenses 120,000 110,000 Dividend income (49,000 ) 0 Net income $ (204,000 ) $ (120,000 ) Retained earnings, 1/1/21 $ (1,100,000 ) $ (870,000 ) Net income (204,000 ) (120,000 ) Dividends declared 120,000 70,000 Retained earnings, 12/31/21 $ (1,184,000 ) $ (920,000 ) Cash and receivables $ 420,000 $ 320,000 Inventory 310,000 720,000 Investment in ClipRite 770,000 0…
ProForm acquired 70 percent of ClipRite on June 30, 2020, for $770,000 in cash. Based on ClipRite's acquisition-date fair value, an unrecorded intangible of $480,000 was recognized and is being amortized at the rate of $12,000 per year. No goodwill was recognized in the acquisition. The noncontrolling interest fair value was assessed at $330,000 at the acquisition date. The 2021 financial statements are as follows: ProForm ClipRite Sales $ (820,000 ) $ (640,000 ) Cost of goods sold 545,000 410,000 Operating expenses 120,000 110,000 Dividend income (49,000 ) 0 Net income $ (204,000 ) $ (120,000 ) Retained earnings, 1/1/21 $ (1,100,000 ) $ (870,000 ) Net income (204,000 ) (120,000 ) Dividends declared 120,000 70,000 Retained earnings, 12/31/21 $ (1,184,000 ) $ (920,000 ) Cash and receivables $ 420,000 $ 320,000 Inventory 310,000 720,000 Investment in ClipRite 770,000 0…