3.Noncontrolling Interest. West Company acquired 60percent of Solar Company for $300,000 when Solar's bookvalue was $400,000. The newly comprised 40 percentnoncontrolling interest had an assessed fair value of $200,000.Also, at the acquisition date, Solar had a trademark (with a 10-year life) that was undervalued in the financial records by$60,000. Also, patented technology (with a 5-year life) wasundervalued by $40,000. Two years later, the following figuresare reported by these two companies (stockholders' equityaccounts are omitted):Current assets620,000Trademarks260,000Patented technology 410,000Liabilities(390,000)Revenues(900,000Expenses500,000Investment income Not givenW Company Solar CompanyBook Value Book Valueab.C.d.e.300,000200,000150,000(120,000)(400,000300,000Assuming Solar Company has paid no dividends, what are thenoncontrolling interest's share of the subsidiary's income andthe ending balance of the noncontrolling interest in thesubsidiary?Solar CompanyFair Value$34,400 and $240,800$26,000 and $230,000$40,000 and $252,000$28,800 and $252,000None of the above.320,000280,000190,000(120,000)

Subsidiary net income86000($100,000-14,000 excess amortization)Noncontrolling interest…

Assuming Solar Company has paid no dividends, what are the noncontrolling interest's share of the subsidiary's income and the ending balance of the noncontrolling interest in the subsidiary? a b. C. d. e. $34,400 and $240,800 $26,000 and $230,000 $40,000 and $252,000 $28,800 and $252,000 None of the above.

Assuming Solar Company has paid no dividends, what are the noncontrolling interest's share of the subsidiary's income and the ending balance of the noncontrolling interest in the subsidiary? a b. C. d. e. $34,400 and $240,800 $26,000 and $230,000 $40,000 and $252,000 $28,800 and $252,000 None of the above.

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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