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On January 1,2023, French Company acquired 60 percent of K-Tech Company for $319,500...

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Accounting

On January 1,2023, French Company acquired 60 percent of K-Tech Company for $319,500 when K-Techs book value was $419,500. The fair value of the newly comprised 40 percent noncontrolling interest was assessed at $213,000. At the acquisition date, K-Tech's trademark (20-year remaining life) was undervalued in its financial records by $80,000. Also, patented technology (10-year remaining life) was undervalued by $33,000.In 2023, K-Tech reports $23,500 net income and declares no dividends. At the end of 2024, the two companies report the following figures (stockholders equity accounts have been omitted):Note: Parentheses indicate a credit balance.

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