On April 18, 2016, Tessle Corporation announced its plan to acquire 90 percent of the outstanding 1,000,000 shares of F-Car Corporation's common stock in a business combination later in the year following regulatory approval.Tessle will account for the transaction in accordance with ASC 805, "Business Combinations."

On July 1, 2016, Tessle purchased a 90 percent controlling interest in F-Car's outstanding voting shares.On this date, Tessle paid $60 million in cash and issued one million shares of Tessle's common stock to the selling shareholders of F-Car.Tessle's share price was $20 on the announcement date and $27 on the acquisition date.

F-Car's remaining 100,000 shares of common stock are owned by a small number of investor's who do not actively trade their shares.Using other valuation techniques (comparable firms, discounted cash flow analysis, etc.), Tessle estimated the fair value of the F-Car's noncontrolling shares at $11,000,000.

The parties agreed that Tessle would issue to the selling shareholders an additional one million shares contingent upon the achievement of certain performance goals during the first 18 months following the acquisition.The acquisition-date fair value of the contingent stock issue was estimated at $10 million.

F-Car has a research and development (R & D) project underway to develop a fast charging battery technology.The technology has a fair value of $14 million.Tessle considers this R & D as in-process because it has not yet reached technological feasibility and additional R & D is needed to bring the project to completion.No assets have been recorded in F-Car's financial records for the R & D costs to date.

F-Car's other assets and liabilities (at fair values) include the following:

Cash $270,000

Accounts receivable800,000

Land2,930,000

Building19,000,000

Machinery46,000,000

Trademark8,000,000

Accounts payable(1,000,000)

Neither the receivables nor payables involve Tessle.

Q1

What is the total consideration transferred by Tessle to acquire its 90 percent controlling interest in F-Car? For full credit you must show computation.

Q2

What values should Tessle assign to identifiable intangible assets as part of the acquisition accounting?

What is the acquisition-date value assigned to the 10 percent noncontrolling interest?What are the potential noncontrolling interest valuation alternatives available under IFRS?

Q4

Under U. S. GAAP, what amount should Tessle recognize as goodwill from the F-Car acquisition?What alternative goodwill valuations are allowed under IFRS?For full credit you must show computation for both parts of this question.