Problem #1 Calculation of Consolidated Net Income & NCI share (Based on P4-14): Drago company acquired 60% of Sago's for $300,000 when Sago's book value was $400,000. The Non-controlling interest had an assessed fair value of $200,000. At the acquisition date, Sago had a trademark (with 10-year remaining life) that was undervalued in the financial records by $60,000. Also, patented technology with a 5-year remaining life was undervalued by $40,000. Two years later, the following figures are reported by the two companies. Current Assets Trademark Patented Technology Liabilities Revenues Expenses Dago Company Book Value $620,000 $260,000 $410,000 ($390,000) ($900,000) $500,000 Sago Company Book Value $300,000 $200,000 $150,000 ($120,000) ($400,000) $300,000 Sago Company Fair Value $320,000 $280,000 $150,000 ($120,000) Required: a) Calculate the consolidated net income before allocation to the controlling and non-controlling interest (note: you must deduct the amortization for the current year) b) Calculate the non-controlling interest's share of the subsidiary's income D Focus 99+ ORI logo