Reference no: EM132910501

On January 1, 2021, Ackerman Company acquires 80% of Seidel Company for $1,866,080 in cash consideration. The remaining 20 percent noncontrolling interest shares had an acquisition-date estimated fair value of $466,520. Seidel's acquisition-date total book value was $1,853,000.

• The fair value of Seidel's recorded assets and liabilities equaled their carrying amounts. However, Seidel had two unrecorded assets-a trademark with an indefinite life and estimated fair value of $267,050 and several customer relationships estimated to be worth $196,200 with four-year remaining lives. Any remaining acquisition-date fair value in the Seidel acquisition was considered goodwill.
• During 2021, Seidel reported $187,480 net income and declared and paid dividends totaling $54,500. Also in 2021, Ackerman reported $381,500 net income, but neither declared nor paid dividends.

Problem 1: What amount should Ackerman assign to the 20 percent noncontrolling interest of Seidel at the acquisition date?

Problem 2: How much of 2021 consolidated net income should be allocated to the noncontrolling interest?

Problem 3: What amount of 2021 dividends should be allocated to the noncontrolling interest?

Problem 4: What amount of noncontrolling interest should appear in the owners' equity section of Ackerman's consolidated balance sheet at December 31, 2021?