1. What amount should Patterson recognize as the total value of the acquisition in its January 1 consolidated balance sheet?

2. What valuation principle should Patterson use to report each of Sorianos identifiable assets and liabilities in its January 1 consolidated balance sheet?

3. How much goodwill resulted from Pattersons acquisition of Soriano?

4. What is the consolidated net income for the year and what amounts are allocated to the controlling and noncontrolling interests?

5. What is the noncontrolling interest amount reported in the December 31 consolidated balance sheet?

6. Assume instead that, based on its share prices, Sorianos January 1 total fair value was assessed at $2,250,000. How would the reported amounts for Sorianos net assets change on Pattersons acquisition-date consolidated balance sheet?

THANKS

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: Current assets Buildings and equipment Trademarks Patented technology Fair Values Remaining Life $ 80,000 1,000,000 5 years 900,000 10 years 2,000,000 4 years Book Values $ 80,000 1,250,000 700,000 940,000 $ 2,970,000 $ 180,000 1,500,000 50,000 500,000 740,000 $ 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. 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. Revenues Expenses Patterson Soriano $3,000,000 $1,400,000 1,750,000 600,000 a. 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? g. 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. Req A Req B Req D to G What amount should Patterson recognize as the total value of the acquisition in its January 1 consolidated balance sheet? Soriano's total fair value Complete this question by entering your answers in the tabs below. 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? g. 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 e. Consolidated net income Controlling interest's share Noncontrolling interest's share Noncontrolling interest Change in reported identifiable net assets Goodwill from Soriano acquistion f. g. ( ReqB Reg D to G