On January 1, 2017, 80 percent of Bozo Inc.'s common stock was acquired by Luminous Enterprises by paying $3,000,000 in cash. The price paid to acquire the 80 percent ownership in Bozo Inc. represented the proportional fair value of all of its common shares.
The book values of Bozo Inc.'s assets and liabilities on January 1, 2017, were $4,200,000 and $1,600,000 respectively. Except a building with book value of $195,000 (remaining life 10 years) that had an appraised fair value of $345,000, the fair values of all other assets and liabilities equaled their book values. In addition to this, Bozo had unrecorded technology processes with zero book value and $1,000,000 of estimated fair value. These processes had an estimated useful life of 20 years on the date of acquisition.
Net income reported by Luminous Enterprises for 2017 before recognition of Bozo's income was $650,000. Bozo reported net income of $350,000 separately for 2017.
During 2017, Luminous and Bozo declared dividends of $85,000 and 50,000 respectively.
Compute the amounts that Luminous Enterprises should report in its December 31, 2017, consolidated financial statement for the following items:
a. Bozo's technology processes
b. Bozo's building
c. Net income attributable to the controlling interest
d. Net income attributable to noncontrolling interest
e. Noncontrolling interest