Solar Company Falr Value Solar West Company Book Value Company Book Value Current assets $620,000 $300,000 $320,000 Trademarks.. Patented technology. Liabilities Revenues 150,000 410,000 (390,000) (900,000) 500,000 Not given 150,000 (120,000) (120,000) Expenses.. Investment income 300,000
Use the following information for Problems 14 through 16:
West Company acquired 60 percent of Solar Company for $300,000 when Solar’s book value was $400,000. The newly comprised 40 percent noncontrolling interest had an assessed fair value of $200,000. Also at the acquisition date, Solar had a trademark (with a 10-year remaining life) that was undervalued in the financial records by $60,000. Also, patented technology (with a 5-year remaining life) was undervalued by $40,000. Two years later, the following figures are reported by these two companies (
What is the consolidated net income before allocation to the controlling and noncontrolling interests?
a. $400,000
b. $486,000
c. $491,600
d. $500,000
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