Purchase of additional equity in WCI |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2015 | ||||||||||||||||||||||||||||||||||||||||||||||
| Purchase of additional equity in WCI: {1} | ||||||||||||||||||||||||||||||||||||||||||||||
| Purchase of additional equity in WCI |
Note 17 - 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. Prior to January 1, 2014 Mentor’s 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 Mentor’s previously-held equity interest in WCI is valued at 1.25 times WCI’s projected 2014 revenue.
Purchase price allocation at 51% of WCI assets and liabilities:
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