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Pop Corporation acquired 70 percent of Soda Company's voting common shares on January 1,20X2, for...

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Accounting

Pop Corporation acquired 70 percent of Soda Company's voting common shares on January 1,20X2, for $119,000. At that date, the noncontrolling interest had a fair value of $51,000 and Soda reported $70,000 of common stock outstanding and retained earnings of $33,000. The differential is assigned to buildings and equipment, which had a fair value $29,000 higher than book value and a remaining 10-year life, and to patents, which had a fair value $38,000 higher than book value and a remaining life of five years at the date of the business combination. Trial balances for the companies as of December 31,20X3, are as follows:
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