On January 1, 2020, French Company acquired 60% of K-Tech Company for $334,500 when K-Techs book

value was $434,500. The fair value of the newly comprised 40% noncontrolling interest was assessed at

$223,000. At the acquisition date, K-Techs trademark (20-year remaining life) was undervalued in its financial

records by $80,000. Also, patented technology (10-year remaining life) was undervalued by $43,000.

In 2020, K-Tech reports $18,500 net income and declares no dividends. At the end of 2021, the two

companies report the following figures (stockholders equity accounts have been omitted):

	French Company Carrying Amounts	K-Tech Company Carrying Ammounts	K-Tech Company Fair Value
Current assets	$ 643,000	$ 323,000	$ 343,000
Trademarks	283,000	223,000	303,000
Patented technology	433,000	173,000	216,000
Liabilities	(413,000)	(143,000)	(143,000)
Revenues	(923,000)	(423,000)
Expenses	477,000	323,000
Investment income	Not Given

1. What is the 2021 consolidated net income before allocation to the controlling and noncontrolling interest? 2. In 2021, assuming K-Tech has declared no dividends, what are the noncontrolling interests share of the subsidiarys income and the ending balance of the noncontrolling interest in the subsidiary?