ProForm acquired 60 percent of ClipRite on June 30, 2020, for $1,140,000 in cash. Based on ClipRite's acquisition-date fair value, an unrecorded intangible of $400,000 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 $760,000 at the acquisition date. The 2021 financial statements are as follows: ProForm ClipRite
Sales $ (900,000) $ (800,000)
Cost of goods sold 585,000 450,000
Operating expenses 200,000 150,000
Dividend income (48,000) 0
Net income $ (163,000) $ (200,000)
Retained earnings, 1/1/18 $ (2,300,000) $ (950,000)
Net income (163,000) (200,000)
Dividends declared 200,000 80,000
Retained earnings, 12/31/18 $ (2,263,000) $ (1,070,000)
Cash and receivables $ 500,000 $ 400,000
Inventory 390,000 800,000
Investment in ClipRite 1,140,000 0
Fixed assets 2,000,000 1,100,000
Accumulated depreciation (700,000) (250,000)
Totals $ 3,330,000 $ 2,050,000
Liabilities $ (667,000) $ (580,000)
Common stock (400,000) (400,000)
Retained earnings, 12/31/18 (2,263,000) (1,070,000)
Totals $ (3,330,000) $ (2,050,000)
ProForm sold ClipRite inventory costing $79,000 during the last six months of 2017 for $190,000. At year-end, 30 percent remained. ProForm sells ClipRite inventory costing $250,000 during 2018 for $350,000. 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