On January 1, Patterson Corporation acquired 80 percent of the 100,000 outstanding voting shares of Soriano, Incorporated, in exchange for $31.25 per share cash. The remaining 20 percent of Sorianos shares continued to trade for $30 both before and after Pattersons acquisition.

At January 1, Sorianos book and fair values were as follows:

Items	Book Values	Fair Values	Remaining Life
Current assets	$ 80,000	$ 80,000	0
Buildings and equipment	1,250,000	1,000,000	5	years
Trademarks	700,000	900,000	10	years
Patented technology	940,000	2,000,000	4	years
	$ 2,970,000	0	0
Current liabilities	$ 180,000	$ 180,000	0
Long-term notes payable	1,500,000	1,500,000	0
Common stock	50,000	0	0
Additional paid-in capital	500,000	0	0
Retained earnings	740,000	0	0
	$ 2,970,000	0	0

In addition, Patterson assigned a $600,000 value to certain unpatented technologies recently developed by Soriano. These technologies were estimated to have a three-year remaining life.

During the year, Soriano declared a $30,000 dividend for its shareholders. The companies reported the following revenues and expenses from their separate operations for the year ending December 31.

Items	Patterson	Soriano
Revenues	$ 3,000,000	$ 1,400,000
Expenses	1,750,000	600,000

Required:

What amount should Patterson recognize as the total value of the acquisition in its January 1 consolidated balance sheet?

What valuation principle should Patterson use to report each of Sorianos identifiable assets and liabilities in its January 1 consolidated balance sheet?

How much goodwill resulted from Pattersons acquisition of Soriano?

What is the consolidated net income for the year and what amounts are allocated to the controlling and noncontrolling interests?

What is the noncontrolling interest amount reported in the December 31 consolidated balance sheet?

Assume instead that, based on its share prices, Sorianos January 1 total fair value was assessed at $2,250,000. How would the reported amounts for Sorianos net assets change on Pattersons acquisition-date consolidated balance sheet?