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ProForm acquired 80 percent of ClipRite on June 30, 2023, for $1,760,000 in cash. Based on ClipRite's acquisition-date fair value, an unrecorded intangible of $800,000 was recognized and is being amortized at the rate of $20,000 per year. No goodwill was recognized in the acquisition. The noncontrolling interest fair value was assessed at $440,000 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 $ (1,040,000) 655,000 340,000 (72,000) $ (117,000) $ (3,900,000) (117,000) 340,000 Sales Cost of goods sold Operating expenses Dividend income Net income attributable to noncontrolling interest Inventory Noncontrolling interest in subsidiary, 12/31/24 $ 640,000 530,000 1,760,000 2,300,000 (500,000) ClipRite $ (1,080,000) 520,000 220,000 0 $ (3,677,000) $ (1,340,000) $540,000 940,000 0 $ 4,730,000 $ (653,000) (400,000) (3,677,000) $ (340,000) $ (1,090,000) (340,000) 90,000 $ 2,530,000 $ (790,000) (400,000) (1,340,000) $ (4,730,000) $ (2,530,000) 1,800,000 (750,000) ProForm sold ClipRite inventory costing $93,000 during the last six months of 2023 for $168,000. At year-end, 30 percent remained. ProForm sold ClipRite inventory costing $320,000 during 2024 for $490,000. 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

ProForm acquired 80 percent of ClipRite on June 30, 2023, for $1,760,000 in cash. Based on ClipRite's acquisition-date fair value, an unrecorded intangible of $800,000 was recognized and is being amortized at the rate of $20,000 per year. No goodwill was recognized in the acquisition. The noncontrolling interest fair value was assessed at $440,000 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 $ (1,040,000) 655,000 340,000 (72,000) $ (117,000) $ (3,900,000) (117,000) 340,000 Sales Cost of goods sold Operating expenses Dividend income Net income attributable to noncontrolling interest Inventory Noncontrolling interest in subsidiary, 12/31/24 $ 640,000 530,000 1,760,000 2,300,000 (500,000) ClipRite $ (1,080,000) 520,000 220,000 0 $ (3,677,000) $ (1,340,000) $540,000 940,000 0 $ 4,730,000 $ (653,000) (400,000) (3,677,000) $ (340,000) $ (1,090,000) (340,000) 90,000 $ 2,530,000 $ (790,000) (400,000) (1,340,000) $ (4,730,000) $ (2,530,000) 1,800,000 (750,000) ProForm sold ClipRite inventory costing $93,000 during the last six months of 2023 for $168,000. At year-end, 30 percent remained. ProForm sold ClipRite inventory costing $320,000 during 2024 for $490,000. 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

Auditing: A Risk Based-Approach (MindTap Course List)
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
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ProForm acquired 80 percent of ClipRite on June 30, 2023, for $1,760,000 in cash. Based on ClipRite's acquisition-date fair value, an unrecorded intangible of $800,000 was recognized and is being amortized at the rate of $20,000 per year. No goodwill was recognized in the acquisition. The noncontrolling interest fair value was assessed at $440,000 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 $ (1,040,000) 655,000 340,000 (72,000) $ (117,000) Sales Cost of goods sold Operating expenses Dividend income Net income attributable to noncontrolling interest Inventory Noncontrolling interest in subsidiary, 12/31/24 ClipRite $ (1,080,000) 520,000 220,000 0 $ (340,000) $ (3,900,000) (117,000) 340,000 $ (1,090,000) (340,000) 90,000 $ (3,677,000) $ (1,340,000) $ 540,000 940,000 $ 640,000 530,000 1,760,000 2,300,000 (500,000) 0 $4,730,000 $ (653,000) $ 2,530,000 $ (790,000) (400,000) (1,340,000) (400,000) (3,677,000) $ (4,730,000) $ (2,530,000) ProForm sold ClipRite inventory costing $93,000 during the last six months of 2023 for $168,000. At year-end, 30 percent remained. ProForm sold ClipRite inventory costing $320,000 during 2024 for $490,000. At year-end, 10 percent is left. 1,800,000 (750,000) Required: With these facts, determine the consolidated balances for the following: Note: Input all amounts as positive values. Consolidated Balance
Transcribed Image Text:ProForm acquired 80 percent of ClipRite on June 30, 2023, for $1,760,000 in cash. Based on ClipRite's acquisition-date fair value, an unrecorded intangible of $800,000 was recognized and is being amortized at the rate of $20,000 per year. No goodwill was recognized in the acquisition. The noncontrolling interest fair value was assessed at $440,000 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 $ (1,040,000) 655,000 340,000 (72,000) $ (117,000) Sales Cost of goods sold Operating expenses Dividend income Net income attributable to noncontrolling interest Inventory Noncontrolling interest in subsidiary, 12/31/24 ClipRite $ (1,080,000) 520,000 220,000 0 $ (340,000) $ (3,900,000) (117,000) 340,000 $ (1,090,000) (340,000) 90,000 $ (3,677,000) $ (1,340,000) $ 540,000 940,000 $ 640,000 530,000 1,760,000 2,300,000 (500,000) 0 $4,730,000 $ (653,000) $ 2,530,000 $ (790,000) (400,000) (1,340,000) (400,000) (3,677,000) $ (4,730,000) $ (2,530,000) ProForm sold ClipRite inventory costing $93,000 during the last six months of 2023 for $168,000. At year-end, 30 percent remained. ProForm sold ClipRite inventory costing $320,000 during 2024 for $490,000. At year-end, 10 percent is left. 1,800,000 (750,000) Required: With these facts, determine the consolidated balances for the following: Note: Input all amounts as positive values. Consolidated Balance
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