ItensCurrent assetsTrademarksPatented technologyLiabilitiesRevenuesExpensesInvestment incomeFrench CompanyCarrying Amounts$ 624,000264,000414,000(394,000)(904,000)496,000Not givenK-Tech CompanyCarryingAmounts$ 304,000204,000154,000(124,000)a. Consolidated net incomeb(1). Noncontrolling interest's share of the subsidiary's incomeb(2). Noncontrolling interest at end of 2024c. Consolidated trademarks(404,000)304,0000Note: Parentheses indicate a credit balance.Required:a. Compute the 2024 consolidated net income before allocation to the controlling and noncontrolling interests.b. In 2024, assuming K-Tech has declared no dividends, compute the noncontrolling interest's share of the subsidiary's income andthe ending balance of the noncontrolling interest in the subsidiary.c. Compute the amount reported for trademarks in the 2024 consolidated balance sheet.K-Tech CompanyFair Values$ 324,000284,000178,000(124,000)$$$$653,60011,200215,200418,000 On January 1, 2023, French Company acquired 60 percent of K-Tech Company for $306,000 when K-Tech's book value was$406,000. The fair value of the newly comprised 40 percent noncontrolling interest was assessed at $204,000. At the acquisitiondate, K-Tech's trademark (10-year remaining life) was undervalued in its financial records by $80,000. Also, patented technology (5-year remaining life) was undervalued by $24,000.In 2023, K-Tech reports $28,000 net income and declares no dividends. At the end of 2024, the two companies report the followingfigures (stockholders' equity accounts have been omitted):ItensCurrent assetsTrademarksPatented technologyLiabilitiesRevenuesExpensesInvestment incomeFrench CompanyCarrying Amounts$ 624,000264,000414,000(394,000)(904,000)496,000Not givenK-Tech CompanyCarryingAmounts$ 304,000204,000154,000(124,000)(404,000)304,000K-Tech CompanyFair Values$ 324,000284,000178,000(124,000)Note: Parentheses indicate a credit balance.Required:a. Compute the 2024 consolidated net income before allocation to the controlling and noncontrolling interests.b. In 2024, assuming K-Tech has declared no dividends, compute the noncontrolling interest's share of the subsidiary's income andthe ending balance of the noncontrolling interest in the subsidiary.c. Compute the amount reported for trademarks in the 2024 consolidated balance sheet.

Consolidation is a financial reporting method that integrates the financial statements of parent and…

a. Consolidated net income b(1). Noncontrolling interest's share of the subsidiary's income b(2). Noncontrolling interest at end of 2024 c. Consolidated trademarks $ $ $ S 653,600 11,200 215,200 418.000

a. Consolidated net income b(1). Noncontrolling interest's share of the subsidiary's income b(2). Noncontrolling interest at end of 2024 c. Consolidated trademarks $ $ $ S 653,600 11,200 215,200 418.000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Consolidation

Consolidation in general examination implies an asset oscillating between well-defined methods of trading status. Consolidation is commonly known as market indecisiveness, which completes when the asset's values move forward or backward the trading structure.

Question

Itens
Current assets
Trademarks
Patented technology
Liabilities
Revenues
Expenses
Investment income
French Company
Carrying Amounts
$ 624,000
264,000
414,000
(394,000)
(904,000)
496,000
Not given
K-Tech Company
Carrying
Amounts
$ 304,000
204,000
154,000
(124,000)
a. Consolidated net income
b(1). Noncontrolling interest's share of the subsidiary's income
b(2). Noncontrolling interest at end of 2024
c. Consolidated trademarks
(404,000)
304,000
0
Note: Parentheses indicate a credit balance.
Required:
a. Compute the 2024 consolidated net income before allocation to the controlling and noncontrolling interests.
b. In 2024, assuming K-Tech has declared no dividends, compute the noncontrolling interest's share of the subsidiary's income and
the ending balance of the noncontrolling interest in the subsidiary.
c. Compute the amount reported for trademarks in the 2024 consolidated balance sheet.
K-Tech Company
Fair Values
$ 324,000
284,000
178,000
(124,000)
$
$
$
$
653,600
11,200
215,200
418,000

On January 1, 2023, French Company acquired 60 percent of K-Tech Company for $306,000 when K-Tech's book value was
$406,000. The fair value of the newly comprised 40 percent noncontrolling interest was assessed at $204,000. At the acquisition
date, K-Tech's trademark (10-year remaining life) was undervalued in its financial records by $80,000. Also, patented technology (5-
year remaining life) was undervalued by $24,000.
In 2023, K-Tech reports $28,000 net income and declares no dividends. At the end of 2024, the two companies report the following
figures (stockholders' equity accounts have been omitted):
Itens
Current assets
Trademarks
Patented technology
Liabilities
Revenues
Expenses
Investment income
French Company
Carrying Amounts
$ 624,000
264,000
414,000
(394,000)
(904,000)
496,000
Not given
K-Tech Company
Carrying
Amounts
$ 304,000
204,000
154,000
(124,000)
(404,000)
304,000
K-Tech Company
Fair Values
$ 324,000
284,000
178,000
(124,000)
Note: Parentheses indicate a credit balance.
Required:
a. Compute the 2024 consolidated net income before allocation to the controlling and noncontrolling interests.
b. In 2024, assuming K-Tech has declared no dividends, compute the noncontrolling interest's share of the subsidiary's income and
the ending balance of the noncontrolling interest in the subsidiary.
c. Compute the amount reported for trademarks in the 2024 consolidated balance sheet.

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Step 2: a. Computation of Consolidated net income

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Step 3: b. Computation of Noncontrolling interest

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Step 4: c. Computation of consolidated trademarks

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