Problem $4-19($Static$)($LO $4-4,4-5,4-7)$

On January $1,$ Patterson Corporation acquired $80$ percent of the $100,000$ outstanding voting shares of Soriano, Incorporated, in exchange for $$31\mathrm{.}25$ per share cash. The remaining $20$ percent of Soriano$$s shares continued to trade for $$30$ both before and after Patterson$$s acquisition.

At January $1,$ Soriano$$s book and fair values were as follows:

ItemsBook ValuesFair ValuesRemaining LifeCurrent assets$ $80,000$$ $80,0000$Buildings and equipment$1,250,0001,000,0005$yearsTrademarks$700,000900,00010$yearsPatented technology$940,0002,000,0004$years$$$ $2,970,00000$Current liabilities$ $180,000$$ $180,0000$Long$-$term notes payable$1,500,0001,500,0000$Common stock$50,00000$Additional paid$-$in capital$500,00000$Retained earnings$740,00000$$ $2,970,00000$

In addition, Patterson assigned a $$600,000$ value to certain unpatented technologies recently developed by Soriano. These technologies were estimated to have a three$-$year remaining life.

During the year, Soriano declared a $$30,000$ dividend for its shareholders. The companies reported the following revenues and expenses from their separate operations for the year ending December $31.$

ItemsPattersonSorianoRevenues$ $3,000,000$$ $1,400,000$Expenses$1,750,000600,000$

Required:

What amount should Patterson recognize as the total value of the acquisition in its January $1$ consolidated balance sheet?

What valuation principle should Patterson use to report each of Soriano$$s identifiable assets and liabilities in its January $1$ consolidated balance sheet?

How much goodwill resulted from Patterson$$s acquisition of Soriano?

What is the consolidated net income for the year and what amounts are allocated to the controlling and noncontrolling interests?

What is the noncontrolling interest amount reported in the December $31$ consolidated balance sheet?

Assume instead that, based on its share prices, Soriano$$s January $1$ total fair value was assessed at $$2,250,000.$ How would the reported amounts for Soriano$$s net assets change on Patterson$$s acquisition$-$date consolidated balance sheet?