Public Corporation acquired 90 percent of Station Companys voting common stock on January 1, 20X1, for $507,600. At the time of the combination, Station reported common stock outstanding of $120,000 and retained earnings of $389,000, and the fair value of the noncontrolling interest was $56,400. The book value of Stations net assets approximated market value except for patents that had a market value of $55,000 more than their book value. The patents had a remaining economic life of five years at the date of the business combination. Station reported net income of $75,000 and paid dividends of $22,000 during 20X1.

No Event Accounts Debit Credit 1 Common stock 120,000 389,000 Retained earnings Income from Station Company NCI in Nl of Station Company Dividends declared Investment in Station Company NCI in NA of Station Company 22,000 B B 2 Amortization Expense Income from Station Company NCI in NI of Station Company 3 C Patents 44,000 Investment in Station Company NCI in NA of Station Company