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In 2023, K-Tech reports $30,000 net income and declares no dividends. At the end of 2024, the two companies report the following figures (stockholders' equity accounts have been omitted): Items Current assets Trademarks Patented technology Liabilities French Company Carrying Amounts $ 620,000 260,000 K-Tech Company K-Tech Company Carrying Amounts Fair Values $ 300,000 200,000 150,000 $ 320,000 280,000 190,000 (120,000) 410,000 (390,000) (120,000) Revenues (900,000) (400,000) Expenses 500,000 Investment income Not given 300,000 0 Note: Parentheses indicate a credit balance. Required: 0 0 0 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. > Answer is complete but not entirely correct. a. Consolidated net income $ 486,000 b(1). Noncontrolling interest's share of the subsidiary's income b(2). Noncontrolling interest at end of 2024 $ 34,400 $ 240,000X c. Consolidated trademarks $ 508,000

In 2023, K-Tech reports $30,000 net income and declares no dividends. At the end of 2024, the two companies report the following figures (stockholders' equity accounts have been omitted): Items Current assets Trademarks Patented technology Liabilities French Company Carrying Amounts $ 620,000 260,000 K-Tech Company K-Tech Company Carrying Amounts Fair Values $ 300,000 200,000 150,000 $ 320,000 280,000 190,000 (120,000) 410,000 (390,000) (120,000) Revenues (900,000) (400,000) Expenses 500,000 Investment income Not given 300,000 0 Note: Parentheses indicate a credit balance. Required: 0 0 0 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. > Answer is complete but not entirely correct. a. Consolidated net income $ 486,000 b(1). Noncontrolling interest's share of the subsidiary's income b(2). Noncontrolling interest at end of 2024 $ 34,400 $ 240,000X c. Consolidated trademarks $ 508,000

Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter16: Retained Earnings And Earnings Per Share
Section: Chapter Questions
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In 2023, K-Tech reports $30,000 net income and declares no dividends. At the end of 2024, the two companies report the following figures (stockholders' equity accounts have been omitted): Items Current assets Trademarks Patented technology Liabilities French Company Carrying Amounts $ 620,000 260,000 K-Tech Company K-Tech Company Carrying Amounts Fair Values $ 300,000 200,000 150,000 $ 320,000 280,000 190,000 (120,000) 410,000 (390,000) (120,000) Revenues (900,000) (400,000) Expenses 500,000 Investment income Not given 300,000 0 Note: Parentheses indicate a credit balance. Required: 0 0 0 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. > Answer is complete but not entirely correct. a. Consolidated net income $ 486,000 b(1). Noncontrolling interest's share of the subsidiary's income b(2). Noncontrolling interest at end of 2024 $ 34,400 $ 240,000X c. Consolidated trademarks $ 508,000
Transcribed Image Text:In 2023, K-Tech reports $30,000 net income and declares no dividends. At the end of 2024, the two companies report the following figures (stockholders' equity accounts have been omitted): Items Current assets Trademarks Patented technology Liabilities French Company Carrying Amounts $ 620,000 260,000 K-Tech Company K-Tech Company Carrying Amounts Fair Values $ 300,000 200,000 150,000 $ 320,000 280,000 190,000 (120,000) 410,000 (390,000) (120,000) Revenues (900,000) (400,000) Expenses 500,000 Investment income Not given 300,000 0 Note: Parentheses indicate a credit balance. Required: 0 0 0 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. > Answer is complete but not entirely correct. a. Consolidated net income $ 486,000 b(1). Noncontrolling interest's share of the subsidiary's income b(2). Noncontrolling interest at end of 2024 $ 34,400 $ 240,000X c. Consolidated trademarks $ 508,000
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