Question

ProForm sold ClipRite inventory costing $77,000 during the last six months of 2017 for $170,000. At year-end, 30 percent remained. ProForm sells ClipRite inventory costing $240,000 during 2018 for $330,000. At year-end, 10 percent is left. Determine the consolidated balances for the following accounts:

Answer 1

Answer:

Explanation:

The missing part of the question is attached in the file below:

The objective is to estimate the noncontrolling interest in the subsidiary.

SO; using the provided information, we use Excel for representing the information.

30% Beg. Book Value less Beg.

Intra gross profit          =(760000+330000-(170000-77000)*30%)*30%

Excess Intagible Allocation   =(750000-(18000/2))*30%

Net Income attributable to NCI  = 54270

Less: Dividends                      = -60000*30%

Noncontrolling Interest in Subsidiary   =SUM(B1:B4)

Result

30% Beg. Book Value less Beg. Intra gross profit          $318,630

Excess Intagible Allocation                                               $ 222,300

Net Income attributable to NCI                                         $54,270

Less: Dividends                                                              $(18,000)

Noncontrolling Interest in Subsidiary                               $577,200