What is the consolidated net income before allocation to the controlling and noncontrolling interests?

a. $400,000.

b. $486,000.

c. $491,600.

d. $500,000.

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 \($40,000\). Two years later, the following figures are reported by these two companies (stockholders’ equity accounts have been omitted):

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Current assets Trademarks Patented technology Liabilities Revenues Expenses Investment income West Company Book Value $620,000 260,000 Solar Company Book Value $300,000 200,000 Solar Company Fair Value $320,000 280,000 410,000 150,000 150,000 (390,000) (120,000) (120,000) (900,000) (400,000) 500,000 300,000 Not given