Required information West Company acquired 60 percent of Solar Company for $301,500 when Solars book value was $401,500 The newly comprised 40 percent noncontrolling interest had an assessed fair value of $201,000 Also at the acquisition date, Solar had a trademark (with a 20 year life) that was undervalued in the financial records by $61,000 Also, patented technology (with a 10 year life) was undervalued by $41,000 Two years later, the following figures are reported by these two companies (stockholders equity accounts have been omitted) West Company Book Value Solar Company Book Value Solar Company Fair Value Current assets $ 621,000 $ 301,000 $ 321,000 Trademarks 261,000 201,000 281,000 Patented technology 411,000 151,000 151,000 Liabilities (391,000 ) (121,000 ) (121,000 ) Revenues (901,000 ) (401,000 ) Expenses 499,000 301,000 Investment income Not given Assuming Solar Company has declared no dividends, what are the noncontrolling interests share of the subsidiarys income and the ending balance of the noncontrolling interest in the subsidiary

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Posted on Sep 12, 2024

Required information West Company acquired 60 percent of Solar Company for $301,500 when Solars book value was $401,500. The newly comprised 40 percent noncontrolling interest

Required information

West Company acquired 60 percent of Solar Company for $301,500 when Solars book value was $401,500. The newly comprised 40 percent noncontrolling interest had an assessed fair value of $201,000. Also at the acquisition date, Solar had a trademark (with a 20-year life) that was undervalued in the financial records by $61,000. Also, patented technology (with a 10-year life) was undervalued by $41,000. Two years later, the following figures are reported by these two companies (stockholders equity accounts have been omitted):

	West Company Book Value			Solar Company Book Value			Solar Company Fair Value
Current assets	$	621,000		$	301,000		$	321,000
Trademarks		261,000			201,000			281,000
Patented technology		411,000			151,000			151,000
Liabilities		(391,000	)		(121,000	)		(121,000	)
Revenues		(901,000	)		(401,000	)
Expenses		499,000			301,000
Investment income		Not given

Assuming Solar Company has declared no dividends, what are the noncontrolling interests share of the subsidiarys income and the ending balance of the noncontrolling interest in the subsidiary?