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Question: ProForm acquired 70 percent of ClipRite on


ProForm acquired 70 percent of ClipRite on June 30, 2020, 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 2021 financial statements are as follows:



ProForm acquired 70 percent of ClipRite on June 30, 2020, -1

ProForm sold ClipRite inventory costing $72,000 during the last six months of 2020 for $120,000. At year-end, 30 percent remained. ProForm sold ClipRite inventory costing $200,000 during 2021 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, 12/31/21

2.99

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