$1$

Problem $4-14($Algo$)($LO $4-2,4-4,4-5)$

$20$

points

$\frac{?}{\text{b}\text{a}\text{r}}(\underset{?}{lim}{)}_{\text{e}\text{B}\text{o}\text{o}\text{k}}$

References

On January $1,2023,$ French Company acquired $60$ percent of K$-$Tech Company for $$334,500$ when K$-$Tech's book value was $$434,500.$ The fair value of the newly comprised $40$ percent noncontrolling interest was assessed at $$223,000.$ At the acquisition date, $K-$Tech's trademark $(20-$year remaining life$)$ was undervalued in its financial records by $$80,000.$ Also, patented technology $(10-$year remaining life$)$ was undervalued by $$43,000.$

In $2023,$ K$-$Tech reports $$18,500$ net income and declares no dividends. At the end of $2024,$ the two companies report the following figures $($stockholders$\text{'}$ equity accounts have been omitted$)$:

$\backslash$table$[[,$French Company,$\backslash$table$[[$K$-$Tech Company$],[$Carrying$],[$Carrying Amounts$]],\backslash$table$[[$K$-$Tech Company$],[$Amounts$],[$Fair Values$]]],[$Current assets,$$643,000,$$$323,000,$$$343,000$