Required information West Company acquired 60 percent of Solar Company for $319,500 when Solar's book...
60.1K
Verified Solution
Link Copied!
Question
Accounting
Required information West Company acquired 60 percent of Solar Company for $319,500 when Solar's book value was $119,500. The newly comprised 40 percent noncontrolling interest had an assessed fair value of $213,000. Also at the acquisition date, Solar had a trademark (with a 10-year life) that was undervalued in the financial records by $71,000. Also, patented technology (with a 5-year life) was undervalued by $51,000. Two years later, the following figures are reported by these two companies (stockholders' equity accounts have been omitted): Current assets Trademarks Patented technology Liabilities Revenues Expenses Investment income West Company Book Value $ 631,000 271,000 421,000 (401,000) (911,000) 489,000 Not given Solar Company B ook Value $ 311,000 211,000 161,000 (131,000) (411,000) 311,000 Solar Company Fair Value $ 331,000 291,000 161,000 (131,000) What is the consolidated trademarks balance? Multiple Choice 0 $538,800 O $553,000 O 0.00 $560,100 $545,900
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
