ProForm acquired 80 percent of ClipRite on June 30, 2023, for $1,280,000 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 $320,000 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 $ (980,000) 625,000 280,000 (80,000) $ (155,000) $ (2,500,000) (155,000) 280,000 $ (2,375,000) $ 580,000 470,000 1,280,000 1,500,000 (400,000) $ 3,430,000 $ (555,000) (500,000) (2,375,000) $ (3,430,000) ClipRite $ (960,000) 490,000 190,000 8 $ (280,000) $ (1,030,000) (280,000) 100,000 $ (1,210,000) $ 480,000 880,000 e 1,500,000 (450,000) $ 2,410,000 $ (700,000) (500,000) (1,210,000) $ (2,410,000) ProForm sold ClipRite Inventory costing $87,000 during the last six months of 2023 for $156,000. At year-end, 30 percent remained. ProForm sold ClipRite Inventory costing $290,000 during 2024 for $430,000. 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
ProForm acquired 80 percent of ClipRite on June 30, 2023, for $1,280,000 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 $320,000 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 $ (980,000) 625,000 280,000 (80,000) $ (155,000) $ (2,500,000) (155,000) 280,000 $ (2,375,000) $ 580,000 470,000 1,280,000 1,500,000 (400,000) $ 3,430,000 $ (555,000) (500,000) (2,375,000) $ (3,430,000) ClipRite $ (960,000) 490,000 190,000 8 $ (280,000) $ (1,030,000) (280,000) 100,000 $ (1,210,000) $ 480,000 880,000 e 1,500,000 (450,000) $ 2,410,000 $ (700,000) (500,000) (1,210,000) $ (2,410,000) ProForm sold ClipRite Inventory costing $87,000 during the last six months of 2023 for $156,000. At year-end, 30 percent remained. ProForm sold ClipRite Inventory costing $290,000 during 2024 for $430,000. 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
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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Transcribed Image Text:ProForm acquired 80 percent of ClipRite on June 30, 2023, for $1,280,000 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 $320,000 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
$ (980,000)
625,000
280,000
(80,000)
$ (155,000)
$ (2,500,000)
(155,000)
280,000
$ (2,375,000)
$ 580,000
470,000
1,280,000
1,500,000
(400,000)
$ 3,430,000
$ (555,000)
(500,000)
(2,375,000)
$ (3,430,000)
ClipRite
$ (960,000)
490,000
190,000
8
$ (280,000)
$ (1,030,000)
(280,000)
100,000
$ (1,210,000)
$ 480,000
880,000
e
1,500,000
(450,000)
$ 2,410,000
$ (700,000)
(500,000)
(1,210,000)
$ (2,410,000)
ProForm sold ClipRite Inventory costing $87,000 during the last six months of 2023 for $156,000. At year-end, 30 percent remained.
ProForm sold ClipRite Inventory costing $290,000 during 2024 for $430,000. 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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