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 | |
| Trademarks | | 269,000 | | | | 209,000 | | | | 289,000 | |
| Patented technology | | 419,000 | | | | 159,000 | | | | 188,000 | |
| Liabilities | | (399,000 | ) | | | (129,000 | ) | | | (129,000 | ) |
| Revenues | | (909,000 | ) | | | (409,000 | ) | | | | |
| Expenses | | 491,000 | | | | 309,000 | | | | | |
| Investment income | | Not 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?
