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On January 1, 2020, French Company acquired 60 percent of K-Tech Company for $313,500 when K-Tech’s...

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Accounting

On January 1, 2020, French Company acquired 60 percent of K-TechCompany for $313,500 when K-Tech’s book value was $413,500. Thefair value of the newly comprised 40 percent noncontrollinginterest was assessed at $209,000. At the acquisition date,K-Tech's trademark (20-year remaining life) was undervalued in itsfinancial records by $80,000. Also, patented technology (10-yearremaining life) was undervalued by $29,000.

In 2020, K-Tech reports $25,500 net income and declares nodividends. At the end of 2021, the two companies report thefollowing figures (stockholders’ equity accounts have beenomitted):

French Company
Carrying Amounts		K-Tech Company
Carrying Amounts		K-Tech Company
Fair Values
  Current assets$629,000$309,000$329,000
  Trademarks269,000209,000289,000
  Patented technology419,000159,000188,000
  Liabilities(399,000)(129,000)(129,000)
  Revenues(909,000)(409,000)
  Expenses491,000309,000
  Investment incomeNot given

What is the 2021 consolidated net income before allocation tothe controlling and noncontrolling interests?

In 2021, assuming K-Tech has declared no dividends, what are thenoncontrolling interest’s share of the subsidiary’s income and theending balance of the noncontrolling interest in thesubsidiary?

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