Following are several figures reported for Allister and Barone as of December 31, 2018: Allister Barone Inventory $ 650,000 $ 450,000 Sales 1,300,000 1,100,000 Investment income not given Cost...

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Accounting

Following are several figures reported for Allister and Barone asof December 31, 2018:
Allister Barone
Inventory $ 650,000 $ 450,000
Sales 1,300,000 1,100,000
Investment income not given
Cost of goods sold 650,000 550,000
Operating expenses 305,000 375,000
Allister acquired 90 percent of Barone in January 2017. Inallocating the newly acquired subsidiary's fair value at theacquisition date, Allister noted that Barone had developed acustomer list worth $86,000 that was unrecorded on its accountingrecords and had a 4-year remaining life. Any remaining excess fairvalue over Barone's book value was attributed to goodwill. During2018, Barone sells inventory costing $145,000 to Allister for$210,000. Of this amount, 10 percent remains unsold in Allister'swarehouse at year-end.
Determine balances for the following items that would appear onAllister's consolidated financial statements for 2018:

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3.9 Ratings (372 Votes)

Barone is a 90 Subsidary of Allister and is acquired Before 1year So in Consolidated Income Statement we didnot have to apporation figures for months And there is implication of intracompany transactionmentioned in Working note 1 and unrecorded entries Consolidated Income Statement Allister Adjustment Barone Adjustment Total Sales Revenue See Answer

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	Allister		Barone
Inventory	$	650,000	$	450,000
Sales		1,300,000		1,100,000
Investment income		not given
Cost of goods sold		650,000		550,000
Operating expenses		305,000		375,000