On January 1, 2020, French Company acquired 60 percent of K-Tech Company for $306,000 when K-Techs book value was $406,000. The fair value of the newly comprised 40 percent noncontrolling interest was assessed at $204,000. At the acquisition date, K-Tech's trademark (10-year remaining life) was undervalued in its financial records by $80,000. Also, patented technology (5-year remaining life) was undervalued by $24,000.

In 2020, K-Tech reports $28,000 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 Amounts				K-Tech Company Fair Values
Current assets	$	624,000			$	304,000			$	324,000
Trademarks		264,000				204,000				284,000
Patented technology		414,000				154,000				178,000
Liabilities		(394,000	)			(124,000	)			(124,000	)
Revenues		(904,000	)			(404,000	)
Expenses		496,000				304,000
Investment income		Not given

What is the 2021 consolidated net income before allocation to the controlling and noncontrolling interests?

Multiple Choice

• $495,200.

• $500,320.

• $408,000.

• $508,000.

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?

Multiple Choice

• $32,320 and $250,080.

• $34,880 and $244,960.

• $27,200 and $234,160.

• $40,000 and $215,200.

What amount is reported for trademarks in the 2021 consolidated balance sheet?

Multiple Choice

• $540,000.

• $556,000.

• $548,000.

• $532,000.