v M You X 1 Log X | SCC X |SEC X | LT Spa x | My1 X | Fina x | 4 Hov X | M Sup X * Cou X ( Erro x |0 mys X D D2L 4-2 X QUE X + X C 2 ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252FIms.mheducation.com%252Fmghmiddleware%252Fmheproducts%252FI... G Finish update : 4-2 Activity: McGraw Hill Connect i Saved Help Save & Exit Submit Check my work 7 On January 1, 2023, French Company acquired 60 percent of K-Tech Company for $324,000 when K-Tech's book value was $424,000. The fair value of the newly comprised 40 percent noncontrolling interest was assessed at $216,000. At the acquisition date, 2.72 K-Tech's trademark (10-year remaining life) was undervalued in its financial records by $80,000. Also, patented technology (5-year points remaining life) was undervalued by $36,000. In 2023, K-Tech reports $22,000 net income and declares no dividends. At the end of 2024, the two companies report the following figures (stockholders' equity accounts have been omitted) eBook Items French Company K-Tech Company K-Tech Company Carrying Amounts Carrying Amounts Fair Values Current assets $ 636,000 $ 316,000 $ 336,000 Hint Trademarks 276, 000 216,000 296, 000 Patented technology 426,000 166, 000 202,000 Liabilities (406, 000) (000'9ET) (136, 000) Revenue (916, 000) (000'9It) Print Expenses 484, 000 316,000 Investment income Not given Note: Parentheses indicate a credit balance. References Required: a. Compute the 2024 consolidated net income before allocation to the controlling and noncontrolling interests. b. In 2024, assuming K-Tech has declared no dividends, compute the noncontrolling interest's share of the subsidiary's income and the ending balance of the noncontrolling interest in the subsidiary. c. Compute the amount reported for trademarks in the 2024 consolidated balance sheet. a. Consolidated net income b(1). Noncontrolling interest's share of the subsidiary's income b(2). Noncontrolling interest at end of 2024 c. Consolidated trademarks Mc Graw Hill myhp ENG ) 0 3:17 PM Q Search 1/31/2025