On January 1, 2024, Pasture Company acquires 80% of Spring Company for $1,917,440 in cash consideration. The remaining 20percent noncontrolling interest shares had an acquisition-date estimated fair value of $479,360. Spring's acquisition-date total bookvalue was $1,904,000.The fair value of Spring's recorded assets and liabilities equaled their carrying amounts. However, Spring had two unrecorded assets-a trademark with an indefinite life and estimated fair value of $274,400 and licensing agreements estimated to be worth $201,600 withfour-year remaining lives. Any remaining acquisition-date fair value in the Spring acquisition was considered goodwill.During 2024, Spring reported $192.640 net income and declared and paid dividends totaling $56,000. Also in 2024, Pasture reported$392.000 net income, but neither declared nor paid dividends.Required:a. What amount should Pasture assign to the 20 percent noncontrolling interest of Spring at the acquisition date?b. How much of 2024 consolidated net income should be allocated to the noncontrolling interest?c. What amount of 2024 dividends should be allocated to the noncontrolling interest?d. What amount of noncontrolling interest should appear in the owners' equity section of Pasture's consolidated balance sheet atDecember 31, 2024?a Value to be assigned to noncontrolling interest (NCI) at acquisition dateb. Consolidated net income allocation to noncontrolling interestc Dividend allocation to noncontrolling interestd. Noncontrolling interest in Spring

Compared to examining each company separately, it offers a more accurate picture of the group's…

On January 1, 2024, Pasture Company acquires 80% of Spring Company for $1,917,440 in cash consideration. The remaining percent noncontrolling interest shares had an acquisition-date estimated fair value of $479,360. Spring's acquisition-date total value was $1,904,000 The fair value of Spring's recorded assets and liabilities equaled their carrying amounts. However, Spring had two unrecorded a trademark with an indefinite life and estimated fair value of $274,400 and licensing agreements estimated to be worth $201. four-year remaining lives. Any remaining acquisition-date fair value in the Spring acquisition was considered goodwill.

On January 1, 2024, Pasture Company acquires 80% of Spring Company for $1,917,440 in cash consideration. The remaining percent noncontrolling interest shares had an acquisition-date estimated fair value of $479,360. Spring's acquisition-date total value was $1,904,000 The fair value of Spring's recorded assets and liabilities equaled their carrying amounts. However, Spring had two unrecorded a trademark with an indefinite life and estimated fair value of $274,400 and licensing agreements estimated to be worth $201. four-year remaining lives. Any remaining acquisition-date fair value in the Spring acquisition was considered goodwill.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter12: Intangibles

Section: Chapter Questions

Problem 18E

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