On January 1, 2020, French Company acquired 60 percent of K-Tech Company for $334,500 when K-Techs book value was $434,500. The fair value of the newly comprised 40 percent noncontrolling interest was assessed at $223,000. At the acquisition date, K-Tech'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 $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 Amounts				K-Tech Company Fair Values
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

a) 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

• $36,680 and $263,760.

• $31,700 and $252,960.

• $40,000 and $230,400.

• $35,020 and $267,080.

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

• $578,000.

• $582,000.

• $590,000.

• $586,000.