question archive Pro-Form acquired 70 percent of Clip-Rite on June 30, 2017, for $910,000 in cash
Subject:Computer SciencePrice: Bought3
Pro-Form acquired 70 percent of Clip-Rite on June 30, 2017, 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 non-controlling interest fair value was assessed at $390,000 at the acquisition date. The 2018 financial statements are as follows:
Compute the balances in problem (28) again, assuming that all intra-entity transfers were made from Clip-Rite to Pro-Form.