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Here is the problem and the answer. Can you explain step by step how we end up with $240,800?? I get the $34,400 number. Explanation

image text in transcribed Here is the problem and the answer. Can you explain step by step how we end up with $240,800?? I get the $34,400 number.

Explanation 1h Part 2 of 3 Required information 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 remaining life) that was undervalued in the financial records by $60,000. Also, patented technology (with a 5-year remaining life) was undervalued by $40,000. Two years later, the following figures are reported by these two companies (stockholders' equity accounts have been omitted): 10/10 points awarded Scored eBook West Company Book Value $ 620,000 260,000 410,000 (390,000) (900,000) 500,000 Not given Current assets Trademarks Patented technology Liabilities Revenues Expenses Investment income Solar Company Book Value $ 300,000 200,000 150,000 (120,000) (400,000) 300,000 Solar Company Fair Value $ 320,000 280,000 150,000 (120,000) Print References Note: Parentheses indicate a credit balance. Assuming Solar Company has declared no dividends, what are the noncontrolling interest's share of the subsidiary's income and the ending balance of the noncontrolling interest in the subsidiary? $34,400 & $240,800

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