On January 1, 2023, French Company acquired 60 percent of K-Tech Company for $300,000 when K-Techs book value was $400,000.

The fair value of the newly comprised 40 percent noncontrolling interest was assessed at $200,000.

At the acquisition date, K-Tech's trademark (10-year remaining life) was undervalued in its financial records by $60,000.

Also, patented technology (5-year remaining life) was undervalued by $40,000.

In 2023, K-Tech reports $30,000 net income and declares no dividends.

At the end of 2024, the two companies report the following figures (stockholders equity accounts have been omitted):

Required:

a. Compute the 2024 consolidated net income before allocation to the controlling and noncontrolling interests.

b. In 2024, assuming K-Tech has declared no dividends, compute the noncontrolling interests share of the subsidiarys income and the ending balance of the noncontrolling interest in the subsidiary.

c. Compute the amount reported for trademarks in the 2024 consolidated balance sheet.

a. The answer is correct I checked and it's correct.

b(1). Incorrect. Need the process to learn.

b(2). Incorrect. Need the process to learn.

c. The answer is correct I checked and it's correct.

Note: Parentheses Indicate a credit balance. \begin{tabular}{|l|lr|} \hline a. Consolidated net income & $ & 486,000 \\ \hline b(1). Noncontrolling interest's share of the subsidiary's income & $ & 92,000 \\ \hlineb(2). Noncontrolling interest at end of 2024 & $212,000 \\ \hline c. Consolidated trademarks & $508,000 \\ \hline \end{tabular}