Question

ProForm acquired 70 percent of ClipRite on June 30, 2017, for $1,260,000 in cash. Based on ClipRite's acquisition-date fair value, an unrecorded intangible of $450,000 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 $540,000 at the acquisition date. The 2018 financial statements are as follows: ProForm ClipRite Sales $ (1,000,000 ) $ (1,000,000 ) Cost of goods sold 635,000 500,000 Operating expenses 300,000 200,000 Dividend income (35,000 ) 0 Net income $ (100,000 ) $ (300,000 ) Retained earnings, 1/1/18 $ (2,900,000 ) $ (1,050,000 ) Net income (100,000 ) (300,000 ) Dividends declared 300,000 50,000 Retained earnings, 12/31/18 $ (2,700,000 ) $ (1,300,000 ) Cash and receivables $ 600,000 $ 500,000 Inventory 490,000 900,000 Investment in ClipRite 1,260,000 0 Fixed assets 1,900,000 1,600,000 Accumulated depreciation (300,000 ) (550,000 ) Totals $ 3,950,000 $ 2,450,000 Liabilities $ (550,000 ) $ (450,000 ) Common stock (700,000 ) (700,000 ) Retained earnings, 12/31/18 (2,700,000 ) (1,300,000 ) Totals $ (3,950,000 ) $ (2,450,000 ) ProForm sold ClipRite inventory costing $89,000 during the last six months of 2017 for $290,000. At year-end, 30 percent remained. ProForm sells ClipRite inventory costing $300,000 during 2018 for $450,000. At year-end, 10 percent is left. Determine the consolidated balances for the following accounts:

	Consolidated Balance
Sales
Cost of goods sold
Operating expenses
Dividend income
Net income attributable to noncontrolling interest
Inventory
Noncontrolling interest in subsidiary, 12/31/18

Answer 1