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On January 1, 2020, Forever Company acquired 60 percent of Kayla Company for $309,000 when Kayla's book value was $409,000. The fair value of the
On January 1, 2020, Forever Company acquired 60 percent of Kayla Company for $309,000 when Kayla's book value was $409,000. The fair value of the newly comprised 40 percent noncontrolling interest was assessed at $206,000. At the acquisition date, Kayla's trademark (20-year remaining life) was undervalued in its financial records by $80,000. Also, patented technology (10-year remaining life) was undervalued by $26,000. In 2021. Forever reports revenues of $906,000 and expenses of $494,000 from its separate operations. Kayla reports revenues of $406,000 and expenses of $306,000. What is the 2021 consolidated net income before allocation to the controlling and noncontrolling interest? Options: $508,040. $512,000. $510,400. $505,400.
In 2021. Forever reports revenues of $906,000 and expenses of $494,000 from its separate operations. Kayla reports revenues of $406,000 and expenses of $306,000. What is the 2021 consolidated net income before allocation to the controlling and noncontrolling interest?
Options:
$508,040.
$512,000.
$510,400.
$505,400.
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