Purchase of additional equity in WCI
|
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2015
|
||||||||||||||||||||||||||||||||||||||||||||||||||||
Purchase of additional equity in WCI: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Purchase of additional equity in WCI |
Note 16 - Purchase of additional equity in WCI
Effective January 1, 2014, Mentor purchased an additional 1% interest in WCI for $25,000 which resulted in a 51% ownership in WCI. In 2013 Mentors investment in WCI was recorded under the equity method. In accordance with Accounting Standard Codification 810-10, Consolidation Overall, Mentor remeasured its previously held equity interest at the acquisition-date fair value and recognized the resulting gain of $1,250,964 on investment in subsidiary which is included in other income and expense in the consolidated statement of operations.
(a) Estimated fair value of Mentors previously-held equity interest in WCI is valued at 1.25 times WCIs projected 2014 revenue.
Purchase price allocation at 51% of WCI assets and liabilities:
|