Question
The Hoover Corporation acquired 80 percent of the 100,000 outstanding voting shares of Rainbow, Inc., for $6.40 per share on January 1, 2020. The remaining
The Hoover Corporation acquired 80 percent of the 100,000 outstanding voting shares of Rainbow, Inc., for $6.40 per share on January 1, 2020. The remaining 20 percent of Rainbows shares also traded actively at $6.40 per share before and after Hoovers acquisition. An appraisal made on that date determined that all book values appropriately reflected the fair values of Rainbows underlying accounts except that a building with a 5-year future life was undervalued by $62,000 and a fully amortized trademark with an estimated 10-year remaining life had a $67,000 fair value. At the acquisition date, Rainbow reported common stock of $100,000 and a retained earnings balance of $260,000. On December 31, 2021, Hoover has trademark with a book value of $148,000 and Rainbow has trademark with a book value of $206,000. What is the consolidated balance for the Trademarks account as of December 31, 2021?
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