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Time Remaining 2 hours 59 minutes 15 seconds 02:59:15 Item 1 Item 1 Time Remaining 2...

Time Remaining 2 hours 59 minutes 15 seconds

02:59:15

Item 1

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Time Remaining 2 hours 59 minutes 15 seconds

02:59:15

ProForm acquired 80 percent of ClipRite on June 30, 2020, for $1,520,000 in cash. Based on ClipRite's acquisition-date fair value, an unrecorded intangible of $500,000 was recognized and is being amortized at the rate of $17,000 per year. No goodwill was recognized in the acquisition. The noncontrolling interest fair value was assessed at $380,000 at the acquisition date. The 2021 financial statements are as follows:

ProForm ClipRite
Sales $ (1,010,000 ) $ (1,020,000 )
Cost of goods sold 640,000 505,000
Operating expenses 310,000 205,000
Dividend income (48,000 ) 0
Net income $ (108,000 ) $ (310,000 )
Retained earnings, 1/1/21 $ (3,000,000 ) $ (1,060,000 )
Net income (108,000 ) (310,000 )
Dividends declared 310,000 60,000
Retained earnings, 12/31/21 $ (2,798,000 ) $ (1,310,000 )
Cash and receivables $ 610,000 $ 510,000
Inventory 500,000 910,000
Investment in ClipRite 1,520,000 0
Fixed assets 2,000,000 1,650,000
Accumulated depreciation (200,000 ) (200,000 )
Totals $ 4,430,000 $ 2,870,000
Liabilities $ (832,000 ) $ (760,000 )
Common stock (800,000 ) (800,000 )
Retained earnings, 12/31/21 (2,798,000 ) (1,310,000 )
Totals $ (4,430,000 ) $ (2,870,000 )
ProForm ClipRite
Sales $ (1,010,000 ) $ (1,020,000 )
Cost of goods sold 640,000 505,000
Operating expenses 310,000 205,000
Dividend income (48,000 ) 0
Net income $ (108,000 ) $ (310,000 )
Retained earnings, 1/1/21 $ (3,000,000 ) $ (1,060,000 )
Net income (108,000 ) (310,000 )
Dividends declared 310,000 60,000
Retained earnings, 12/31/21 $ (2,798,000 ) $ (1,310,000 )
Cash and receivables $ 610,000 $ 510,000
Inventory 500,000 910,000
Investment in ClipRite 1,520,000 0
Fixed assets 2,000,000 1,650,000
Accumulated depreciation (200,000 ) (200,000 )
Totals $ 4,430,000 $ 2,870,000
Liabilities $ (832,000 ) $ (760,000 )
Common stock (800,000 ) (800,000 )
Retained earnings, 12/31/21 (2,798,000 ) (1,310,000 )
Totals $ (4,430,000 ) $ (2,870,000 )

(Note: Parentheses indicate a credit balance.)

ClipRite sold ProForm inventory costing $90,000 during the last six months of 2020 for $300,000. At year-end, 30 percent remained. ClipRite sold ProForm inventory costing $305,000 during 2021 for $460,000. At year-end, 10 percent is left.

Determine the consolidated balances for the following: (Input all amounts as positive values.)

Sales
Cost of Goods Sold
Operating Expenses
Dividend Income
Net Income Attributable to Noncontrolling Interest
Inventory
Noncontrolling Interest in Subsidiary, 12/31/21

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