Company: MNTR
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001620
Chunk: 44

Company: Mentor Capital, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 8
Chunk 44
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’s limited ability to exercise significant influence from December 31, 2003 to December
31, 2013. Accordingly, the investment was initially recorded at cost with adjustments to the carrying amount of the investment to recognize
our share of the earnings or losses of the investee each reporting period.

In
accordance with ASC 810-10, “Consolidation – Overall,” Mentor remeasured its previously held equity interest
in WCI at the acquisition-date fair value, which was reported at December 31, 2014 as follows:

 Schedule of equity interest at the acquisition date fair value

    Cash to acquire an additional 1% equity interest in WCI 
    $25,000 
  
    Fair value of 50% interest (1) 
     1,250,000 
  
    Investment under the equity method 
     - 
  
    Total purchase price to be allocated 
    $1,275,000 

    (1)
    The
    estimated fair value of Mentor’s previously held equity interest in WCI was valued at 1.25 times WCI’s projected 2014
    revenue.

Purchase
price allocation at 51% of WCI assets and liabilities:

 Schedule of purchase price allocation

    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 

Goodwill
of $1,324,143 was derived from consolidating WCI effective January 1, 2014. The remaining $102,040 of goodwill was related to our first
acquisition of a 50% interest in WCI. The Company accounted for its goodwill in accordance with ASC 350, “Intangibles –
Goodwill and Other,” which required the Company to test goodwill for impairment annually or whenever events or changes in circumstances
indicate that the carrying value of an asset may not be recoverable, rather than amortize. No impairment