West Company acquired 60 percent of Solar Company for $300.000 when Solar's book value was $400,000. The
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West Company acquired 60 percent of Solar Company for $300.000 when Solar's book value was $400,000. The newly comprised 40 percent noncontrolling interest had an assessed fair value of $200,000. Also at the acquisition date, Solar had a trademark (with a 10-year life) that was undervalued in the financial records by $60,000. Also, patented technology (with a 5-year life) was undervalued by 540.000. Two years later, the following figures are reported by these two companies (stockholders' equity accounts have been omitted):
What is the consolidated trademarks balance?
a. $508,000.
b. $514,000.
c. $520.000.
d. $540,000.
Related Book For
Advanced Financial Accounting
ISBN: 978-0078025624
10th edition
Authors: Theodore E. Christensen, David M. Cottrell, Richard E. Baker
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