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ProForm ClipRite Sales ... $ (800,000) $ (600,000) Cost of goods sold Operating expenses Dividend income 535,000 400,000 100,000 100,000 (35,000) $ 200,000) $ (100,000) -0- Net income $ (1,300,000) $ (850,000) (200,000) 100,000 $ (1,400,000) $ (900,000) $ 400,000 290,000 910,000 Retained earnings, 1/1/18 Net income (100,000) Dividends declared 50,000 Retained earnings, 12/31/18 $ 300,000 700,000 -0- Cash and receivables Inventory Investment in ClipRite.. Fixed assets Accumulated depreciation 1,000,000 (300,000) $ 2,300,000 $ (600,000) $ (400,000) (300,000) (1,400,000) $ (2,300,000) $(1,400,000) 600,000 (200,000) $ 1,400,000 Totals Liabilities Common stock (100,000) (900,000) Retained earnings, 12/31/18 Totals

ProForm ClipRite Sales ... $ (800,000) $ (600,000) Cost of goods sold Operating expenses Dividend income 535,000 400,000 100,000 100,000 (35,000) $ 200,000) $ (100,000) -0- Net income $ (1,300,000) $ (850,000) (200,000) 100,000 $ (1,400,000) $ (900,000) $ 400,000 290,000 910,000 Retained earnings, 1/1/18 Net income (100,000) Dividends declared 50,000 Retained earnings, 12/31/18 $ 300,000 700,000 -0- Cash and receivables Inventory Investment in ClipRite.. Fixed assets Accumulated depreciation 1,000,000 (300,000) $ 2,300,000 $ (600,000) $ (400,000) (300,000) (1,400,000) $ (2,300,000) $(1,400,000) 600,000 (200,000) $ 1,400,000 Totals Liabilities Common stock (100,000) (900,000) Retained earnings, 12/31/18 Totals

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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ProForm acquired 70 percent of ClipRite on June 30, 2017, for $910,000 in cash. Based on Clip- Rite’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 2018 financial statements are as follows:
ProForm sold ClipRite inventory costing $72,000 during the last six months of 2017 for $120,000. At year-end, 30 percent remained. ProForm sells ClipRite inventory costing $200,000 during 2018 for $250,000. At year-end, 10 percent is left. With these facts, determine the consolidated balances for the following:
Sales
Cost of Goods Sold
Operating Expenses
Dividend Income
Net Income Attributable to Noncontrolling Interest
Inventory
Noncontrolling Interest in Subsidiary, 12/31/18

ProForm ClipRite Sales ... $ (800,000) $ (600,000) Cost of goods sold Operating expenses Dividend income 535,000 400,000 100,000 100,000 (35,000) $ 200,000) $ (100,000) -0- Net income $ (1,300,000) $ (850,000) (200,000) 100,000 $ (1,400,000) $ (900,000) $ 400,000 290,000 910,000 Retained earnings, 1/1/18 Net income (100,000) Dividends declared 50,000 Retained earnings, 12/31/18 $ 300,000 700,000 -0- Cash and receivables Inventory Investment in ClipRite.. Fixed assets Accumulated depreciation 1,000,000 (300,000) $ 2,300,000 $ (600,000) $ (400,000) (300,000) (1,400,000) $ (2,300,000) $(1,400,000) 600,000 (200,000) $ 1,400,000 Totals Liabilities Common stock (100,000) (900,000) Retained earnings, 12/31/18 Totals
Transcribed Image Text:ProForm ClipRite Sales ... $ (800,000) $ (600,000) Cost of goods sold Operating expenses Dividend income 535,000 400,000 100,000 100,000 (35,000) $ 200,000) $ (100,000) -0- Net income $ (1,300,000) $ (850,000) (200,000) 100,000 $ (1,400,000) $ (900,000) $ 400,000 290,000 910,000 Retained earnings, 1/1/18 Net income (100,000) Dividends declared 50,000 Retained earnings, 12/31/18 $ 300,000 700,000 -0- Cash and receivables Inventory Investment in ClipRite.. Fixed assets Accumulated depreciation 1,000,000 (300,000) $ 2,300,000 $ (600,000) $ (400,000) (300,000) (1,400,000) $ (2,300,000) $(1,400,000) 600,000 (200,000) $ 1,400,000 Totals Liabilities Common stock (100,000) (900,000) Retained earnings, 12/31/18 Totals
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