Measurement and reporting of noncontrolling interest under acquisition method (@LO 17-5) On December 31, 2009. Internet Capital Group (ICG), which is now known as Actua Corp., acquired 89% of the equity of GovDelivery for $19,670,000. This acquisition was accounted for under the acquisition method. In its 10-K filing with the SEC, ICG disclosed the following purchase price allocation to net assets and noncontrolling interest based on acquisition date fair values: ($ in thousands) Goodwill $ 3,644 Customer lists (11-year life) 13,910 Trademarks/trade names (11-year life) 1,320 Technology (10-year life) 710 Other net assets 1,506 21,090 Noncontrolling interest(1) (1,420) $19,670 Source: Internet Capital Group 2009 Form 10-K. Required: 1. Locate the current accounting guidance in FASB ASC Topic 805 for measuring noncontrolling interest in a subsidiary at the acquisition date. What is the basic measurement principle ICG must use to recognize the noncontrolling interest in GovDelivery at acquisition? 2. The accompanying note states that ICG valued the noncontrolling interest of GovDelivery with consideration of discounts for lack of control and lack of marketability. Discuss the appropriateness of this valuation technique with reference to current accounting standards. 3. Based on the above acquisition price allocation, estimate the amount of the discount applied to the noncontrolling interest valuation on the acquisition date relative to the acquired shares. 4. How will this acquisition affect ICG's consolidated income statement for the year ended December 31, 2009, and its consolidated balance sheet at December 31, 2009? 5. Explain the effect on future years' consolidated net income of the asset allocations listed in the table