|
Bennett acquired 60 percent of Zeigler on June 30, 2012, for $840,000 in cash. Based on Zeigler’s acquisition-date fair value, only one unrecorded intangible of $700,000 was recognized and is being amortized at the rate of $12,000 per year. The noncontrolling interest fair value was assessed at $560,000 at the acquisition date. The 2013 financial statements are as follows: |
|
Bennett |
Zeigler |
|||||
|
Sales |
$ |
(960,000 |
) |
$ |
(920,000 |
) |
|
Cost of goods sold |
615,000 |
480,000 |
||||
|
Operating expenses |
260,000 |
180,000 |
||||
|
Dividend income |
(50,000 |
) |
0 |
|||
|
|
|
|
|
|
|
|
|
Net income |
$ |
(135,000 |
) |
$ |
(260,000 |
) |
|
|
|
|
|
|
|
|
|
Retained earnings, 1/1/13 |
$ |
(2,500,000 |
) |
$ |
(1,010,000 |
) |
|
Net income |
(135,000 |
) |
(260,000 |
) |
||
|
Dividends paid |
260,000 |
80,000 |
||||
|
|
|
|
|
|
|
|
|
Retained earnings, 12/31/13 |
$ |
(2,375,000 |
) |
$ |
(1,190,000 |
) |
|
|
|
|
|
|
|
|
|
Cash and receivables |
$ |
560,000 |
$ |
460,000 |
||
|
Inventory |
450,000 |
860,000 |
||||
|
Investment in Zeigler |
1,070,000 |
0 |
||||
|
Fixed assets |
1,300,000 |
1,400,000 |
||||
|
Accumulated depreciation |
(200,000 |
) |
(350,000 |
) |
||
|
|
|
|
|
|
|
|
|
Totals |
$ |
3,180,000 |
$ |
2,370,000 |
||
|
|
|
|
|
|
|
|
|
Liabilities |
$ |
(505,000 |
) |
$ |
(880,000 |
) |
|
Common stock |
(300,000 |
) |
(300,000 |
) |
||
|
Retained earnings |
(2,375,000 |
) |
(1,190,000 |
) |
||
|
|
|
|
|
|
|
|
|
Totals |
$ |
(3,180,000 |
) |
$ |
(2,370,000 |
) |
|
|
|
|
|
|
|
|
|
|
||||||
|
(Note: Parentheses indicate a credit balance.) |
|
Zeigler sold Bennett inventory costing $85,000 during the last six months of 2012 for $250,000. At year-end, 30 percent remained. Zeigler sells Bennett inventory costing $280,000 during 2013 for $410,000. At year-end, 20 percent is left. With these facts, determine the consolidated balances for the accounts: (Leave no cells blank - be certain to enter "0" wherever required. Input all amounts as positive values.) |
|
Sales |
$ |
|
Cost of goods sold |
$ |
|
Operating expenses |
$ |
|
Dividend income |
$ |
|
Noncontrolling interest in consolidated income |
$ |
|
Inventory |
$ |
|
Total noncontrolling interest at 12/31/13 |
$ |
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