Hoyle, Schaefer and Doupnik Chapter4 Problem 25

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

In addition, Patterson assigned a $600,000 value to certain unpatented technologies recently developed by Soriano. These technologies were estimated to have a 3-year remaining life.

During the year, Soriano paid a $30,000 dividend to its shareholders. The companies reported the following revenues and expenses fromtheir separate operations for the year ending December 31:

	Patterson	Soriano
Revenues	3,000,000	1,400,000
Expenses	1,750,000	600,000

What is the noncontrolling interest amount reported in the December 31 consolidated balance sheets?

Remaining Life (years) Current Assets Building and equipment Trademarks Patented technology Book Values $ 80,000 $ 1,250,000 $ 700,000 $ 940,000 $ 2,970,000 Fair Values $ 80,000 $ 1,000,000 $ 900,000 $ 2,000,000 5 10 4 $ 180,000 $ 1,500,000 Current Liabilities $ 180,000 Long-term notes payable $1,500,000 Common Stock $ 50,000 Additional Paid in capital $ 500,000 Retained earnings $ 740,000 $ 2,970,000