On January 1, Patterson Corporation acquired 80 percent of the 100,000 outstanding voting shares of Soriano, Inc., in exchange for $31.25 per share cash. The remaining 20 percent of Soriano's shares continued to trade for $30 both before and after Patterson's acquisition At January 1, Soriano's book and fair values were as follows: Remaining Life Current assets Buildings and equipment Trademarks Patented technology Values $ 80,000 1,000,000 900,000 2,000,000 5 years 10 years 4 years Book Values 80,000 1,250,000 700,000 940,000 $2,970,000 180,000 1,500,000 50,000 500,000 740, eee $2,970,000 $ 180,000 1,500,000 Current liabilities Long-term notes payable Common stock Additional paid in Capital Retained earnings In addition, Patterson assigned a $600,000 value to certain unpatented technologies recently developed by Soriano. There 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. Patterson Soriano Revenues$3,000,000 $1,400,000 Expenses 1,750,000 600,000 Q. What amount should Patterson recognize as the total value of the acquisition in its January 1 consolidated balance sheet? b. What valuation principle should Patterson use to report each of Soriano's identifiable assets and liabilities in its January 1 consolidated balance sheet? d. How much goodwill resulted from Patterson's acquisition of Soriano? e. What is the consolidated net income for the year and what amounts are allocated to the controlling and noncontrolling interests? f. What is the noncontrolling interest amount reported in the December 31 consolidated balance sheet? 9. Assume instead that, based on its share prices, Soriano's January 1 total fair value was assessed at $2.250,000. How would the reported amounts for Soriano's net assets change on Patterson's acquisition-date consolidated balance sheet? Complete this question by entering your answers in the tabs below. Complete this question by entering your answe Reg A Req B Reg D to G What amount should Patterson recognize as the total Soriano's total fair value Rec A Complete this question by entering your answers in the tabs below. Req A Req B Reg D to G What valuation principle should Patterson use to report each of Soriano's identifiable assets and liabiliti consolidated balance sheet? Which valuation principle should be used? Req A Req B Reg D to G d. How much goodwill resulted from Patterson's acquisition of Soriano? e. What is the consolidated net income for the year and what amounts are allocated to the controlling and noncontrolling interests? f. What is the noncontrolling interest amount reported in the December 31 consolidated balance sheet? 9. Assume instead that, based on its share prices, Soriano's January 1 total fair value was assessed at $2,250,000. How would the reported amounts for Soriano's net assets change on Patterson's acquisition-date consolidated balance sheet? Show less d Goodwill Consolidated net income Controlling interest's share Noncontrolling interest's share Noncontrolling interest Change in reported identifiable net assets Goodwill from Soriano acquistion
