Assignment #2 Q4

[Ruby]

Hi I am having issues with this question, not sure if i am calculating
the patent's balance correctly this is what i have


i) Consolidated Patents at Dec 31, Year 6

Patent balance Jan 1, Year 5 300,000
Amortization (60,000)
Balance December 31 Year 5 240,000
Patent addition Jan 1, Year 6 60,000
Amortization
Original (60,000)
New -15,000
Balance December 31 Year 6 225,000

[KevinM]

Where are you getting the additional patent - I was going to use these
numbers

Con net inc 102,000
NCI 35,500
Patents 180,000
CRE 464,500

Not sure if correct - but a lot of others are getting the same

[Ruby]

For the second increase in percentage the 20% increase the difference
i calculated on what they paid and value was $60,000

Cost of 20% Sic Jan 1 Year 6 2,000 common shares $166,000

Book value of Sic Jan 1 Year 6
Commons shares 200,000
Retained earnings 330,000
530,000
Pic's ownership interest 20% 0.20 106,000

Purchase price discrepancy 60,000
Allocated to revalue to net assets of Silver
Patents 60,000

[KevinM]

From the readings - I thought percentage of PPD changes (in this case
75% - 95%) but the incremental purchase does not change the PPD
amount. I hope I read this correct (module 6.1)

> > > Balance December 31 Year 6       225,000- Hide quoted text -
>
> - Show quoted text -

[Ruby Lal]

Thank i will re-read that! :)