homework Pr Form acquired 60 percent of i Rite on Jun unrecorded intangible of $
ID: 2546542 • Letter: H
Question
homework Pr Form acquired 60 percent of i Rite on Jun 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 2018 financial statements are as follows e 30, 2017, for $600,000 in cash. Based on ClipRite's acquisition-date fair value, an (810,000) (620,000) 540,000 110,000 (36,000) 405,000 105,000 Cost of goods sold Dividend incone (196,000) (110,000) $ (1,000,000) (860,000) (196,000) (110,000) 110,000 60,000 - (1,086,000) (910,000) Retained earnings, 12/31/18 Cash and receivables Inventory Investment in clipRite Fixed assets Accunulated depreciation 40,000 300,000 310,000 710,000 650,000 s1,910,000 1,420,000 600,000 1,100,000 (500,000) (250,000) 21,00) (200,000) (310,000) (200,000) Common atock Retained earninga, 12/31/18 (1,086,000) Totals $(1,910,000) 1,420,000) ClipRite sold ProForm inventory costing $70,000 during the last six months of 2017 for $100,000. At year-end, 30 percent remained. ClipRite sells ProForm inventory costing $205,000 during 2018 for $260,000. At year-end, 10 percent is left. With these facts, determine the consolidated balances for the followingExplanation / Answer
Sales = 810000+620000-100000(inter)-260000(inter)=1070000
Cost of goods sold = 540000+405000-100000-260000-9000(opening Inventory) +5500(closing inventory=581500
Operating Exp = 110000+105000+11000(depreciation of intangible)
Dividend income = NIl because it would be considered as inyer departmental transfer of money
Net Income attributable to NCI= 110000+9000-5500-11000= 102500 * 0.4= 41000
Inventory = 300000+710000+9000-5500= 1013500
NCI= 400000+41000(current year share) -2200( Depreciation of previous year 11000*40%/2)= 438800
Consolidatedbalances Sales 1070000 Cost of Goods Sold -581500 Operating Expenses -226000 Dividend Income Nil Net Income Attributable to non
controlling interest 41000 inventory 1013500 Non Controlling Interest in Subsidiary 438800
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