Question

ProForm acquired 70 percent of ClipRite on June 30, 2017, for $980,000 in cash. Based on ClipRite's acquisition-date fair value, an unrecorded intangible of $600,000 was recognized and is being amortized at the rate of $15,000 per year. No goodwill was recognized in the acquisition. The noncontrolling interest fair value was assessed at $420,000 at the acquisition date. The 2018 financial statements are as follows:

		ProForm				ClipRite
Sales	$	(850,000	)		$	(700,000	)
Cost of goods sold		560,000				425,000
Operating expenses		150,000				125,000
Dividend income		(70,000	)			0
Net income	$	(210,000	)		$	(150,000	)
Retained earnings, 1/1/18	$	(1,400,000	)		$	(900,000	)
Net income		(210,000	)			(150,000	)
Dividends declared		150,000				100,000
Retained earnings, 12/31/18	$	(1,460,000	)		$	(950,000	)
Cash and receivables	$	450,000			$	350,000
Inventory		340,000				750,000
Investment in ClipRite		980,000				0
Fixed assets		1,500,000				850,000
Accumulated depreciation		(600,000	)			(300,000	)
Totals	$	2,670,000			$	1,650,000
Liabilities	$	(610,000	)		$	(100,000	)
Common stock		(600,000	)			(600,000	)
Retained earnings, 12/31/18		(1,460,000	)			(950,000	)
Totals	$	(2,670,000	)		$	(1,650,000	)

ProForm sold ClipRite inventory costing $74,000 during the last six months of 2017 for $140,000. At year-end, 30 percent remained. ProForm sells ClipRite inventory costing $225,000 during 2018 for $300,000. At year-end, 10 percent is left.

Determine the consolidated balances for the following accounts:

sales:

cogs:

operating expenses:

dividend income:

net income attributable to noncontrolling interest

inventory

noncontrolling interest in subsidiary on 12/31/18:

Answer 1