$1$

$2\mathrm{.}78/11\mathrm{.}11$

points awarded

On January $1,2023,$ French Company acquired $60$ percent of K$-$Tech Company for $$315,000$ when K$-$Tech's book value was $$415,000.$ The fair value of the newly comprised $40$ percent noncontrolling interest was assessed at $$210,000.$ At the acquisition date, K$-$Tech's trademark $(10-$year remaining life$)$ was undervalued in its financial records by $$80,000.$ Also, patented technology $(5-$year remaining life$)$ was undervalued by $$30,000.$

In $2023,$ K$-$Tech reports $$21,000$ net income and declares no dividends. At the end of $2024,$ the two companies report the following figures $($stockholders$\text{'}$ equity accounts have been omitted$)$:

$\backslash$table$[[$Items$,$French Company Carrying Amounts,K$-$Tech Company Carrying Amounts,K$-$Tech Company Fair Values$],[$Current assets,$ $628,000,$$ $308,000,$$ $328,000],[$Trademarks$,268,000,208,000,288,000],[$Patented technology,$418,000,158,000,188,000],[$Liabilities$,(398,000),(128,000),(128,000)$