On January 1, 2009, Patterson Corporation acquired 80 percent of the 100,000 outstanding voting shares of Soriano, Inc., in exchange for $31.25 per share cash. The remaining 20 percent of Sori¬ ano s shares continued to trade for $30.00 both before and after Patterson’s acquisition. LO6 At January 1, 2009, Soriano’s book and fair values were as follows:

Book Values Fair Values Remaining Life Current assets.

. 80,000 80,000 Buildings and equipment.

. 1,250,000 1,000,000 5 years Trademarks.

. 700,000 900,000 10 years Patented technology.

*

. 940,000 2,970,000 2,000,000 4 years Current liabilities.

. 180,000 180,000 Long-term notes payable.

Common stock.

Additional paid-in capital.

Retained earnings.

. 1,500,000

. 50,000

. 500,000

. 740,000 2,970,000 1,500,000 In addition, Patterson assigned a $600,000 value to certain unpatented technologies recently devel¬ oped by Soriano. These technologies were estimated to have a 3-year remaining life.

During 2009, Soriano paid a $30,000 dividend to its shareholders. The companies reported the fol¬ lowing revenues and expenses from their separate operations for the year ending December 31.2009.

Patterson Soriano Revenues.3,000,000 1,400,000 ExPenses.1,750,000 600,000

a. What total value should Patterson assign to its Soriano acquisition in its January 1, 2009, con¬ solidated balance sheet?

b. What valuation principle should Patterson use to report each of Soriano’s identifiable assets and liabilities in its January 1, 2009, consolidated balance sheet?

c. For years subsequent to acquisition, how will Soriano’s identifiable assets and liabilities be val¬ ued in Patterson’s consolidated reports?

d. How much goodwill resulted from Patterson’s acquisition of Soriano?

e. What is the 2009 consolidated income and what amounts are allocated to the controlling and noncontrolling interests?

f. What is the noncontrolling interest amount reported in the December 31,2009, consolidated bal¬ ance sheet?

g. Assume instead that, based on its share prices, Soriano’s January 1,2009, total fair value was assessed at $2,250,000. How would the reported amounts for Soriano’s assets change on Patter¬ son’s acquisition-date consolidated balance sheet?