West Company acquired 60 percent of Solar Company for $315,000 when Solars book value was...
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West Company acquired 60 percent of Solar Company for $315,000 when Solars book value was $415,000. The newly comprised 40 percent noncontrolling interest had an assessed fair value of $210,000. Also at the acquisition date, Solar had a trademark (with a 10-year life) that was undervalued in the financial records by $70,000. Also, patented technology (with a 5-year life) was undervalued by $50,000. Two years later, the following figures are reported by these two companies (stockholders equity accounts have been omitted):
West Company Book Value
Solar Company Book Value
Solar Company Fair Value
Current assets
$
630,000
$
310,000
$
330,000
Trademarks
270,000
210,000
290,000
Patented technology
420,000
160,000
160,000
Liabilities
(400,000
)
(130,000
)
(130,000
)
Revenues
(910,000
)
(410,000
)
Expenses
490,000
310,000
Investment income
Not given
What is the consolidated net income before allocation to the controlling and noncontrolling interests?
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