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On January 1 , 2 0 2 4 , Pasture Company acquires 8 0 % of Spring Company for $ 1 , 8 4 8
On January Pasture Company acquires of Spring Company for $ in cash consideration. Spring's stock is not
actively traded, and therefore its total fair value must be implied. Spring's acquisitiondate total book value was $
The fair value of Spring's recorded assets and liabilities equaled their carrying amounts. However, Spring had two unrecorded assets
a trademark with an indefinite life and estimated fair value of $ and licensing agreements estimated to be worth $ with
fouryear remaining lives. Any remaining acquisitiondate fair value in the Spring acquisition was considered goodwill.
During Spring reported $ net income and declared and paid dividends totaling $ Also in Pasture reported
$ net income, but neither declared nor paid dividends.
Required:
a What amount should Pasture assign to the percent noncontrolling interest of Spring at the acquisition date?
b How much of consolidated net income should be allocated to the noncontrolling interest?
c What amount of dividends should be allocated to the noncontrolling interest?
d What amount of noncontrolling interest should appear in the owners' equity section of Pasture's consolidated balance sheet at
December
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