Business, 21.07.2021 18:40 markyyy53

The difference between consolidated net income and On January 1, 20X1, Port Inc. acquired 80% of the outstanding voting shares of Salut Inc. for total consideration of $1,200,000. On this date, Salut reported total assets of $1,800,000 and total liabilities of $800,000. All assets and liabilities had fair values equal to carrying values except for the following: Carrying value Fair value
Patent $90,000
Bonds payable $150,000 200,000

The patent had a remaining useful life of 10 years as of the date of acquisition. The bonds mature on December 31 , 20X4. It is now December 31. and Port and Salut reported $140,000 and $80,000 of net income. respectively. Port uses the cost
method to account for Salut in its legal entity financial statements. Salut did not declare any dividends during. For impairment testing purposes, Port evaluates Salut as a stand-alone cash- generating unit (CGU). The net asset value of the CGU was found to be impaired by $20,000 in 20X2, and the impairment loss was allocated entirely to goodwill.

Required:
What is the amount of consolidated net income attributable to the shareholders of Port for the year ended December 31. 20X2, assuming that Port elected to use the fair value enterprise (FVE) method?

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The difference between consolidated net income and On January 1, 20X1, Port Inc. acquired 80% of the...

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