Required information [The following information applies to the questions displayed below.] On January 1, 2020, 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 2020, K-Tech reports $24,000 net income and declares no dividends. At the end of 2021, the two companies report the following figures (stockholders' equity accounts have been omitted): French Company K-Tech Company Carrying Carrying K-Tech Company Fair Values $ 322,000 282,000 176,000 (122,000) Amounts Amounts 622,000 302,000 202,000 152,000 (122,000) (402,000) 302,000 Current assets Trademarks 262,000 412,000 (392,000) (902,000) 498,000 Not given Patented technology Liabilities Revenues Expenses Investment income Note: Parentheses indicate a credit balance. What is the 2021 consolidated net income before allocation to the controlling and noncontrolling interests?

Required information [The following information applies to the questions displayed below.] On January 1, 2020, 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 2020, K-Tech reports $24,000 net income and declares no dividends. At the end of 2021, the two companies report the following figures (stockholders' equity accounts have been omitted): French Company K-Tech Company Carrying Carrying K-Tech Company Fair Values $ 322,000 282,000 176,000 (122,000) Amounts Amounts 622,000 302,000 202,000 152,000 (122,000) (402,000) 302,000 Current assets Trademarks 262,000 412,000 (392,000) (902,000) 498,000 Not given Patented technology Liabilities Revenues Expenses Investment income Note: Parentheses indicate a credit balance. What is the 2021 consolidated net income before allocation to the controlling and noncontrolling interests?

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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