Quarterly report pursuant to Section 13 or 15(d)

Schedule of Purchase of additional equity in WCI (Tables)

v3.3.0.814
Schedule of Purchase of additional equity in WCI (Tables)
9 Months Ended
Sep. 30, 2015
Schedule of Purchase of additional equity in WCI (Tables):  
Schedule of Purchase of additional equity in WCI (Tables)

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.

 

Cash to acquire additional 1% equity interest in WCI

$

25,000

Fair value of 50% interest (a)

 

1,250,000

Investment under equity method

 

-

   

Total purchase price to be allocated

$

1,275,000

 

(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:

 

WCI assets and liabilities:

 

 

  Current assets

$

327,238

  Property and equipment

 

51,239

  Other assets

 

816,952

  Current liabilities

 

(112,810)

  Long-term debt

 

(1,178,977)

 

Net deficit

 

 

(96,358)

Mentor equity rate

 

51%

 

Mentor portion of liabilities in excess of assets

 

 

(49,143)

Goodwill

 

1,324,143

    

Net assets acquired

$

 

1,275,000