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What is the consolidated net income before allocation

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Question

West Company acquired 60 percent of Solar Company for $325,500 when Solar's book value was $425,500. The newly comprised 40 percent noncontrolling interest had an assessed fair value of $217,000. Also at the acquisition date, Solar had a trademark (with a 10-year life) that was undervalued in the financial records by $77,000.

Also, patented technology (with a 5-year life) was undervalued by $57,000. 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 $ 637,000 $ 317,000 $ 337,000 Trademarks 277,000 217,000 297,000 Patented technology 427,000 167,000 167,000 Liabilities (407,000 ) (137,000 ) (137,000 ) Revenues (917,000 ) (417,000 ) Expenses 483,000 317,000 Investment income Not given

What is the consolidated net income before allocation to the controlling and noncontrolling interests?

Reference no: EM132345519

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