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Hoyle, Schaefer and Doupnik Chapter4 Problem 14-16 On January 1, 2020, FrenchCompany acquired 60% of K-TechCompany for $300,000 when K-Techs book value was $400,000. The

Hoyle, Schaefer and Doupnik Chapter4 Problem 14-16

On January 1, 2020, FrenchCompany acquired 60% of K-TechCompany for $300,000 when K-Techs book value was $400,000. The newly comprised 40% non-controlling interest had an assessed fair value of $200,000. Also at the acquisition date, K-Techhad 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.

1) What is the goodwill at the acquisition date? (Provide calculation here)

2) What is the proportion of goodwill assigned to NCI? (Provide calculation here)

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